Which of the following principles do marketers employ in claiming that their products are the fastest growing selling in the market, and by using phrases like, ‘‘Do not miss the action and excitement your friends are experiencing’’?
A) Expert principle
B) Social proof principle
C) Reactance principle
D) Reciprocation principle
Correct answer is B) Social proof principle (One of the six principles of universal influence)
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Planned change is reactive change
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Dye Industries currently uses no debt, but its new CFO is considering changing the capital structure to 49.0% debt (wd) by issuing bonds and using the proceeds to repurchase and retire some common shares so the percentage of common equity in the capital structure (wc) = 1 - wd. Given the data shown below, by how much would this recapitalization change the firm's cost of equity, i.e., what is rL - rU? Do not round your intermediate calculations. Risk-free rate, rRF6.00% Tax rate, T40% Market risk prem, RPM3.00% Current wd0% Current beta, bU1.30 Target wd49.0% ?
A. 2.59% B. 1.91% C. 2.92% D. 1.57% E. 2.25%
Generally, managers that make informed decisions will not be liable even if their decisions turned out badly.?
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The only proper way to estimate the NPV of a foreign project is to discount the appropriate cash flows first and then convert them to the domestic currency at the current spot rate
Indicate whether the statement is true or false.