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Andrew [12]
2 years ago
8

Discount Outlet has net income of $389,100, a profit margin of 2.8 percent, and a return on assets of 8.6 percent. What is the c

apital intensity ratio
Business
1 answer:
Ratling [72]2 years ago
5 0

An efficiency ratio known as the capital intensity ratio provides valuable insight into a company's financial situation.

Capital Intensity Ratio = Total Assets/Total Revenue

Return on assets = Net income/Total Assets

Total Assets = Net income/Return on Assets= $389,100/0.086

Total Revenue = Net income/Net Profit Margin = $389,100/0.028

Capital intensity ratio = ($389,100 /0.086) / ($389,100 / 0.028) =0.33

This ratio reveals how much capital or other resources a company has to have in order to make single dollar in sales. This ratio is the inverse of the asset turnover ratio, making it simple to calculate the capital intensity ratio if you already know the asset turnover ratio. For all capital-intensive firms, we require a good or higher capital intensity ratio. A company that invests a significant amount of capital in its manufacturing process is said to be capital-intensive. E.g., Power generating facilities. A company that has made significant investments in assets to generate income has a high capital intensity ratio (CIR). A company with a low CIR is able to produce larger revenues while owning fewer assets. As a result, businesses can use this ratio to modify their capital budgeting and planning.

Learn more about Capital Intensity Ratio here

brainly.com/question/14594640

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A high growth software company will pay its first dividend of S0.30 next year. This dividend of . After that, the growth will $0
bija089 [108]

Answer:

The price of the stock today is $3.49. The right answer is A.

Explanation:

In order to calculate the price of the stock today, we need to calculate first Value after year 5 with the following formula:

Value after year 5=(D5*Growth Rate)/(Required return-Growth Rate)

To find D5 we need to make the following calculations:

IF D1=0.3 , hence D2=(0.3*1.1)=0.33 , D3=(0.33*1.1)=0.363 , D4=(0.363*1.1)=0.3993 and D5=(0.3993*1.1)=0.43923

Therefore, Value after year 5=(0.43923*1.05)/(0.15-0.05) =$4.611915

Therefore, now we can calculate the the price of the stock today with the following formula:

current price=Future dividends and value*Present value of discounting factor(rate%,time period)

=0.3/1.15+0.33/1.15^2+0.363/1.15^3+0.3993/1.15^4+0.43923/1.15^5+$4.611915/1.15^5

=$3.49

3 0
3 years ago
At Acme Global, customer service is an important priority. However, Michael's latest performance appraisal focused on his lack o
White raven [17]

Answer:

The correct answer is letter "B": based on mission and objectives.

Explanation:

Performance appraisals are evaluations managers make on how employees are conducting their day-to-day activities. Appraisals are standardized based on the duties and goals workers must fulfill according to their jobs. Determining if the employee is underperforming or meeting expectations will depend on that standard. However, <em>every appraisal should also pay important attention to the objectives set for the workers, and if they are reaching them or not.</em>

5 0
3 years ago
In Walt Disney's Magic Kingdom, customers can visit a fairy kingdom, a pirate ship, or even a haunted house. Disney is marketing
Anni [7]

Answer:

Experience.

Explanation:

Marketing mix can be defined as the choices about product attributes, pricing, distribution, and communication strategy that a company blends and offer its targeted markets so as to produce a desired response.

Generally, a marketing mix is made up of the four (4) Ps;

1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.

2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.

3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.

4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.

A service organization can be defined as an assembly of people who are saddled with the responsibility of providing customer-oriented services rather than just making profit.

In Walt Disney's Magic Kingdom, customers can visit a fairy kingdom, a pirate ship, or even a haunted house. Thus, Disney is marketing an experience because they comprises of both a tangible and an intangible quality.

8 0
3 years ago
A certain company has purchased new swivel chairs for its employees. The company made the purchase on a credit plan at Buy Right
vlabodo [156]

Answer: $45,862.29

Explanation:

This question relates to the Present value of an Annuity.

The original price would be the present value of the payments and since the payments are constant over a period, they are an annuity

Interest/ r = 2.25/12 months = 0.1875%

Periods/ n = 4 * 12 months = 48 months

= Payment * (( 1 - ( 1 + r) ^ n)/ r)

= 1,000 * (( 1 - ( 1 + 0.1875%)^48) / 0.1875%)

= $45,862.29

7 0
3 years ago
Select the correct answer. What is the last and most crucial step in the treatment of alcoholism? A. detoxification B. accepting
Katyanochek1 [597]

Answer: Rehabilitation

Explanation: Because your trying to get the person off the alcohol - not a great explanation but yea.

8 0
3 years ago
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