Which of the following is NOT a question related to marketing management and demand risk analysis? A) Is the distribution channel appropriate? B) Is the product appropriate relative to the competitors? C) How much marketing management depth does the firm have? D) Who are the firm’s target customers? ANSWER C
Date: September 19th, 2020
The closer the base sales level used is to the operating breakeven point, the smaller the operating leverage. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
In doing business in foreign countries, financing operations in the local market not only improves the company’s business ties to the host community but also minimizes exchange rate risk. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The strategic and tactical choices that a firm makes lead to the firm’s marketing mix which is referred to as the Four P’s of Marketing. They are: A) distinguishing between who buys the product and who consumes it. B) determining the channel through which the product or service is purchased. C) assessing the firm’s plant […]
Date: September 19th, 2020
Which type of firm described is likely to have a high dividend payout ratio policy? A) A younger firm with uncertain income but significant growth opportunities. B) An older firm with steady earnings but few growth opportunities.. C) An older firm with irregular income and significant growth opportunities. D) A younger firm with significant income […]
Date: September 19th, 2020
Tangshan Mining issued $10,000 of commercial paper for $9,925 for 60 days. Based on this information, the effective annual rate of interest on the commercial paper would be about 10 percent. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
When a firm needs to raise money via a bond issue, one of the quickest ways is through a ________. This activity involves the purchase of a large block of securities by a large institutional investor such as a pension fund, an endowment fund, or an insurance company. A) private placement. B) public placement. C) […]
Date: September 19th, 2020
The empirical evidence from various and historical U.S. financial asset classes reported by the author DOES NOT support the financial axiom that to achieve greater return an investor must take greater risk. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Exchange rate risk can often be hedged by using currency forward, futures, or options markets. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Assume perfect capital markets except that taxes DO exist. Why does the value of the interest tax shield accrue entirely to the shareholders and none of the value goes to the bondholders? What will be an ideal response? ANSWER The value of the firm increases by the value of the interest tax shield […]
Date: September 19th, 2020
