Why would a manager not accept a positive net present value project?
What will be an ideal response?
The value of the project accrues to the firm as a whole. Thus, if the firm has risky debt in its capital structure, some of the value of the project will accrue to the bondholders, and the remainder will accrue to the equity holders. The increase in the value of equity may be less than the equity holders must contribute to finance the investment in the project. Hence, a manager acting in the interests of the shareholders would forego such a project. This situation is referred to as an underinvestment problem.
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Which is a disadvantage of the direct approach to collecting perception data?
A) The criteria are influenced by the brands or stimuli being evaluated. B) The researcher must identify all the salient attributes. C) The spatial map obtained depends upon the attributes identified. D) Both B and C are disadvantages.
Narrative 14-1For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. Suppose you earn a gross income of $2,730 per month and apply for a mortgage with a monthly PITI of $510.51. You have other financial obligations totaling $431.34 per month. (Use the ratio guidelines from your text) What type of mortgage, if any, would you qualify for?
A. FHA only B. FHA and Conventional C. Conventional only D. None
Traditional retail products and travel services are the source of much of the current growth in m-commerce.
Answer the following statement true (T) or false (F)
A bylined article strategy as part of an overall marketing plan has been used by Merkle to ________
A) develop relationships with stockholders B) position its executives as thought leaders C) build interest in industry trade shows D) counter negative claims made by competitors E) pitch its products to media outlets