All categories

2 years ago

The use of capital in the production process ______.

Business

1 answer:

Ray Of Light [21]2 years ago

7 0

Answer:

The correct answer is letter "D": improves efficiency, increases output, and provides for growth.

Explanation:

In general, capital refers to financial resources. Capital includes financial assets used in manufacturing, as well as the machinery and equipment businesses. Investors purchase stocks or mutual funds using capital. Companies raise capital from a bond or stock sales to fund their operations. Although capital may be cash or currency, it is not the same as money.

While talking about production, capital allows firms to hire qualified personnel that improves the company's efficiency which is likely to increase production or improve the quality of the output. Eventually, both an increase in efficiency and output contributes to the growth of an institution in the form of more profits.

You might be interested in

Tool Manufacturing has an expected EBIT of $ 39,000 in perpetuity and a tax rate of 33 percent. The firm has $ 80,000 in outstan

Thepotemich [5.8K]

Answer:

$208,530

Explanation:

The computation of value of levered firm is shown below:-

For computing the value of levered firm first we need to compute the Value of Unleavened firm

Value of unlevered firm = Earning before interest and tax × (1 - tax rate) ÷ Cost unlevered of Capital

= $39,000 × (1 - 33%) ÷ 15%

= $39,000 × 0.67 ÷ 15%

= $39,000 × 4.67

= $182,130

Now, the Value of levered firm = Value of unlevered firm + Outstanding debt × Tax rate

= $182,130 + $80,000 × 33%

= $182,130 + $26,400

= $208,530

3 0

3 years ago

Drum buffers are:

maks197457 [2]

Answer: Extra safety that is applied to a project immediately before the use of the constrained resource.(D)

Explanation:

Drum buffer can be explained as period of time that is used to safeguard the drum resource from the problems that occur from the drum operation.

The aim of the drum buffer effect is to provide a recheck of the work in order not to deviate from the real aim of the project. The buffer makes up for the process variation, and makes the project stable as it gives extra safety which is applied mmediately before using constrained resource.

6 0

3 years ago

The following information is available for a company's cost of sales over the last five months. Month Units sold Cost of sales J

Mice21 [21]

TC Units

$64,500 (High) 2,470

} $30,700 } 2000

$33,800( Low) 470

VC per Unit = 30 700 ÷ 2000 = $15.35

when 470 units are sold,( substitute vc per unit = 15.35)

TC = FC + VC

33, 800 = FC + ( 15.35× 470)

FC = $ 26 586

4 0

2 years ago

FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares o

Ulleksa [173]

Answer:

18.52%

Explanation:

Calculation for the what would be the equity weight

Using this formula

Equity weight =E÷E+P+D

Let plug in the formula

Equity weight=$2,000,000×$27÷$2,000,000×$27+$1,000,000×$14.50+$10,000×.98×$1,000

Equity weight=$14,500,000÷$78,300,000

Equity weight=.1852×100

Equity weight=18.52%

Therefore what would be the equity weight is 18.52%

7 0

2 years ago

The Geostar Company, leading manufacturer of wireless communication devices, is considering three cost-reduction proposals in ts

S_A_V [24]

Answer: Alternative 3 will be selected.

Explanation:

The system that should be selected is the alternative that is better than the other alternatives by being higher than MARR if selected.

First compare A1 to A0

The rate of return here is 18% which is higher than the MARR of 15% so Alternative 1 should be chosen over A0 which is to do nothing.

Compare A1 to A2

If A2 is chosen over A1, the incremental return is 10% which is less than the MARR of 15% so A2 should not be chosen over A1. A1 should instead be chosen over A2.

Compare A1 to A3

If A3 is chosen over A1 then the incremental return would be 18%. This is higher than the MARR of 15% so Alternative 3 should be chosen over Alternative 1.

Alternative 3 should be chosen over A1 which should be chosen over A2 and A0.

A3 will therefore be selected.

7 0

2 years ago