Final Exam Practice Problems 1. Firm ABC’s only outstanding debt is $100‚000 worth of coupon bond (market value). Its yield to maturity is 8%. Given that its tax rate is 40%‚ what is its effective cost of debt? Effective cost of debt = cost of debt * (1-tax rate) =8%*(1-40%)=4.8% 2. Firm ABC has a stock currently traded at $20. The next year’s dividend will be $0.20. The dividend growth rate is forecasted to be 6% forever. Risk-free rate is 3%‚ and market risk premium is 4%. Assume that Constant
Premium Bond Bonds Finance
Chapter8: pricing. April 2006 QUESTION 3 a) When companies introduce new products into the market‚ they have two broad pricing strategies: market-skimming pricing and market-penetration pricing. Distinguish these two strategies. (10 marks) b) When would price cuts and price increases be necessary? (10 marks) c) Why do businesses use cash discounts? Explain. (5 marks) April 2007 QUESTION 2 Nadeera Enterprise is a well known producer of cookies in Malaysia. The company intends
Premium Pricing Marketing
Corporate Responsibility and Marketing Strategies Contemporary Business/508 January 28‚ 2014 Dr. Allen Beck Apple corporation bases its success on “creating innovative‚ high quality products and services and on demonstrating integrity in every business interaction.” According to Apple‚ four main principles contribute to integrity: honesty‚ respect‚ confidentiality‚ and compliance. To more thoroughly detail these principles‚ Apple has drafted a code of business conduct
Premium Marketing Apple Inc.
Bonny van Dongeren BUS 508 Dr. Steed 28 April 2014 Corporate Responsibility and Marketing Strategies The Apple Corporation has very strong ethical and social responsibilities within the corporate world. Apple currently has a great position on their customer service and significant value. This is important when it comes to upholding a positive image. They have also violated a lot of these ethical and social responsibilities which has caused it to hurt Apple Corporation’s reputation. A couple of
Premium Social responsibility Corporate social responsibility Business ethics
To study and review an article that focuses on the corporate culture in relationship marketing. (The role of corporate culture in relationship marketing – Ilesias.O et.al‚ 2009) Methodology : The paper used a qualitative methodology involving interviews of related personnel. The interviews were then analyzed throught the grounded theory method. Conclusion : It was learnt that there are two key values that are needed to put relationship marketing in effect‚ which are client orientation and high degree
Premium Marketing Qualitative research
MARKETING MANAGEMENT (MB106) – OBJECTIVE TYPE QUESTIONS (ONE SET) MBA I SEMESTER 1. Which of the following is central to any definition of marketing? a. Making a profit b. Making a sale c. Demand management d. Transactions e. Customer relationships 2. Introducing new products to existing markets is an example of: a. conglomerate diversification b. vertical diversification c. horizontal diversification d. concentric diversification 3. When a company acquires a supplier through an acquisition
Premium Marketing
Corporate Responsibility and Marketing Strategies Dr. Tonya D. Moore Contemporary Business January 28‚ 2014 Introduction Corporate responsibility and Marketing Strategies are essential in today’s market and to any premier company in this day and age. Researching Apple’s ethical and social responsibility and their position will allow the consumer to determine if the company is meeting or exceeding their responsibility. Exploring the publications which documents the impact of the company’s
Premium Business ethics Ethics Marketing
information 7% Verbal arrangement of the message Credibility Trust / Honesty apology Knowledgeable / expert Position / status Personal brand Personal Brand = Performance + Personality + Visibility + Trust PB = P1 + P2 + V + T 63% 3 Marketing concepts: Create Customer Value (Benefits – cost = customer value) Create Customer Satisfaction (employee satisfaction = customer satisfaction) Travel further to Target over Wal-Mart because of customer service‚ cleanliness 77% of people with
Premium Pricing Marketing
don’t of test marketing‚ benefit n drawback. -Test marketing is a technique used during product development to determine how people respond to a product. Which the product and marketing program are introduced into realistic market settings. Do: Once a product is in development‚ companies can embark on test marketing which involves bringing actual examples of the public. They expose the product to a selected area of the public to see how they respond. The benefits to test marketing are very effective
Premium Marketing Customer relationship management
Executive Summary There are not too many people who are fully aware of what corporate housing really is and what it consists of. Corporate Housing offers an alternative to hotels when the clients are planning on staying for a couple of weeks. Our goal is to make our company memorable for every client‚ we need to get to know our clients and truthfully address their needs accordingly. We will be reviewing the nature of corporate housing‚ how we plan on presenting the product‚ what locations and demographics
Premium Pricing Hotel Marketing