Let Us Consider That Customers Arrive at the Rate of Seven

question 12

Multiple Choice

Let us consider that customers arrive at the rate of seven per hour and wait for an average 0.25 hour in a shop.Using Little's law,determine the average number of customers in the queuing system.

• A)2
• B)2.4
• C)1.25
• D)1.75

---

Definitions:

Weight of Debt

A component of a firm's capital structure that quantifies the proportion of total capital represented by debt.

Weighted Average Cost of Capital

A calculation of a company's cost of capital in which each category of capital is proportionately weighted, used to evaluate the cost of funding projects.

Bond Issue

The process by which a company or government raises funds by selling bonds to investors, which then are obliged to pay back with interest.

Cost of Equity

The return a company theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertake by investing their capital.