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prohojiy [21]
1 year ago
6

If the cost of debt is the lowest choice among financing options, would increasing our percentage of debt always reduce our cost

of capital? why or why not?
Business
1 answer:
kenny6666 [7]1 year ago
6 0

The coat of Capital is calculated by taking the weighted average cost of all sources of Capital.Given that if the cost of Debt is the lowest choice among financing options then it will definitely reduce our cost of capital. Therefore the above statement is true because an Increase in low-cost options will also reduce a firm overall cost of capital.

A liability is an obligation by one party, the debtor, to require payment of money or other agreed-upon value to another party, the creditor. An obligation is a deferred payment or series of payments, distinguished from an outright purchase. Debts may be owed by sovereign states or countries, local governments, corporations, or individuals.

Commercial debt is generally subject to contractual terms regarding the amount and timing of principal and interest repayments[1]. Loans, bonds, bonds, and mortgages are all types of liabilities. In financial accounting, liabilities are a type of financial transaction rather than equity. The obligation is a debt to a society of criminals who owe them a debt of gratitude that cannot pay their debt.

Learn more about Debt here

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Just-in-time inventory systems a. have components arrive at a manufacturing plant just in time to enter the production process.
insens350 [35]

Answer: The correct answer is "a. have components arrive at a manufacturing plant just in time to enter the production process.".

Explanation: Just-in-time inventory systems <u>have components arrive at a manufacturing plant just in time to enter the production process.</u>

The just-in-time method is a production organization system for factories, of Japanese origin, which allows to reduce inventory costs of raw materials and products already made. JIT is about getting supplies to the factory, or products to the customer, "just in time," that is, just before they are used and only in the quantities needed. This is done to eliminate the need for store and transfer raw materials from the warehouse to the production line.

5 0
3 years ago
All that blooms provides environmentally friendly lawn services for homeowners. its operating costs are as follows. depreciation
babunello [35]

To get the break-even point, the Total Cost must equal to the Total Revenue or Profit. The Total Cost is the sum of Fixed Costs and Incremental Costs. Fixed costs are depreciation, advertising and insurance which is equal to $5,871 per month. Incremental Costs are weed and feed materials, direct labor, and fuel which is equal to $32 per lawn. The Marginal Revenue is equal to $89 per lawn. Letting “N” to be the break-even point in number of lawns, the break-even equation becomes: $5,871 + $32N = $89N. Then calculating N, the break-even number of lawns is equal to 103.

4 0
3 years ago
Boxes of​ Honey-Nut Oatmeal are produced to contain 14.0 ​ounces, with a standard deviation of 0.15 ounce. For a sample size of
raketka [301]

Answer:

UCL 14.08oz

LCL 13.93oz

Explanation:

´x=σ/√n

0.15/36 =0.15/6=0.025

´x= =14oz

UCL=´x+z σ´x

UCL=´x−z σ´x

UCL= 14 +3σ´x=14 +3(0.025)

=14+0.075

UCL=14.075oz approximately 14.08oz

LCL= 14 -3σ´x=14 -3(0.025)

=14- 0.075

LCL=13.925oz approximately 13.93oz

4 0
4 years ago
which statement is true of an association rule? a. it is ultimately judged on how actionable it is and how well it explains the
iVinArrow [24]

In descriptive analytics, historical data is stored, aggregated, and visualised in a form that can aid in understanding the present and prior states of the company. The answer is It uses analytic models to describe the relationship between metrics that drive business performance.

Working with a storage system where all the pertinent company data is gathered is the foundation of descriptive analytics. Depending on the volume and complexity of the data to be processed, this system may use classic SQL systems, distributed files and derivatives in the Hadoop style, or NoSQL databases. On this storage layer, technologies are deployed that enable the processing of this data both in batch and online modes, enabling the aggregations and queries required for the analysis.Predictive analytics refers to a technique for data analysis that focuses on predicting future outcomes based on historical information and data. Machine learning and statistical modelling are examples of analytics techniques that fall under this category.For accurate information and future predictions, the methodology is crucial.Thus, the method can link the present with the future, which is useful for future research.

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4 0
1 year ago
Agnessa let the management of Acme Global know that she will retire next year. Agnessa job requires specialized skills. Rather t
Anettt [7]

Please see the complete question below.

Agnessa let the management of Acme Global know that she will retire next year. Agnessa job requires specialized skills. Rather than advertise the job, management has the human resource management department look through its files for people in the organization who have the needed skills. This recruitment method is known as ______.

A. open recruitment

B. employee referrals

C. closed recruitment

D. targeted recruitment

Answer:

The answer is closed recruitment (option C)

Explanation:

Closed Recruitment can be defined as the type of recruitment that takes place 'in house'. In other words, there is no need for an external advertisement of vacancy because candidates needed to fill in vacant job roles or positions of a firm are selected from the existing pool of employees in the firm. Firms carry out closed recruitment by looking into the files of people who have the skills needed to occupy the vacant role and selecting/appointing who is best fitted for the role.

6 0
4 years ago
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