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
#SPJ4
What Mark is displaying is selective distortion. This term is used when individuals continue to interpret information in accordance to the belief that they are supporting.
In the example, even though the news have reported that his favorite shoe brand uses child labor to manufacture the brand’s shoes, Mark chooses to believe that the media is lying instead of accepting the report as true.
Answer : ensure uninterrupted flows of raw materials at the lowest total cost, improve total cost,improve quality of the finished goods produced,and maximize customer satisfaction
Answer:
Initial cost to Mitchell Labs to go private = $78.75 million
Total value = $121.60 million
Percentage return = 54.41%
Explanation:
As per the data given in the question,
a)
Initial cost to Mitchell Labs to go private = Price per share×no. of shares
= $22.50 × 3.50 million
= $78.75 million
b)
Total value = Sale proceeds + Current share value
= Sale proceeds +[(P ÷ E × EPS) × No. of shares]
= $12.50 million +$7.75 million +$24 million + [(17× $1.30) × 3.50 million]
= $44.25 million + $77.35 million
= $121.60 million
c)
Percentage return = ($121.60 million - $78.75 million) ÷ $78.75 million
= 0.5441
= 54.41%
Answer:
10.78%
Explanation:
The next dividend payment for Dizzle incorporation is $2.85
The growth rate is 5%
Current stock price is $49.30
Therefore the required return can be calculated as follows
= dividend payment/stock price + growth rate
= 2.85/49.30 + 5/100
= 0.0578 + 0.05
= 0.1078 × 100
= 10.78%
