Sizing up marketing management involves: A) identifying the firm’s strengths and weaknesses related to marketing. B) identifying the target market. C) identifying the appropriate marketing mix D) All of the above. ANSWER A
Date: September 19th, 2020
Banker’s Acceptances are closely affiliated with international transaction rather than domestic ones. Describe and provide an example of how this market works and why there is a need for the instrument. What will be an ideal response? ANSWER When firms engage in international trade they are often unfamiliar with the customer and the […]
Date: September 19th, 2020
$1.00 (one dollar) invested in a portfolio of 90-day U.S. Treasury bills in 1925 would have grown to a value IN EXCESS OF ________ by 2011 assuming that all cash flows had been reinvested in the portfolio. (Choose the answer closest to the research provided dollar amount.) A) $1.00 B) $10.00 C) $100.00 D) $1,000.00 […]
Date: September 19th, 2020
As we waive the conditions of perfect capital markets and include taxes, M&M suggest that the average cost of capital for the firm will remain unchanged with the addition of debt. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Hayley’s Theatrical Supply is in the process of negotiating a line of credit with two local banks. The prime rate is currently 8 percent. The terms follow: (a) Calculate the effective interest rate of both banks. (b) Recommend which bank’s line of credit Hayley’s Theatrical Supply should accept. ANSWER (a) 1st National Bank […]
Date: September 19th, 2020
Which of the following is NOT a question related to operations management and supply risk analysis? A) How close is the firm to full capacity? B) Are the products appropriate relative to the competitors’ products? C) How much inventory is required to meet demand? D) How critical are technological innovations and investments? ANSWER […]
Date: September 19th, 2020
The degree of operating leverage depends on the base level of sales used as a point of reference. The closer the base sales level used is to the operating breakeven point, the greater the operating leverage. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Core Concepts Inc,. has experienced a stock price increase from $100.00 to $131.59 in only three years. Over this time period, what has been the firm’s geometric average annual rate of return? A) 9.58% B) 9.63% C) 9.88% D) 9.92% ANSWER A Explanation: A) Via Calculator: N = 3, PV = -100, PMT […]
Date: September 19th, 2020
Operating leverage is defined as the use of fixed operating costs to magnify the effects of changes in sales on a firm’s earnings before interest and taxes. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following classes of U.S. securities have NOT averaged an annual rate of return that exceeds the average annual rate of inflation? (Data from 1926 – 2011) A) small company stocks B) large company stocks C) 90-day Treasury bills D) All of these classes of securities have averaged higher average annual rates of […]
Date: September 19th, 2020
