Simulation solutions cannot easily be transferred from one problem domain to another
Indicate whether the statement is true or false
TRUE
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Which of the following statements is not true of frequent-shopper programs?
A. Frequent-shopper programs are programs that identify and provide rewards to customers who patronize a retailer. B. Frequent-shopper programs are also commonly called loyalty programs. C. Frequent-shopper programs can provide customer information automatically to the retailer when customers have their program card scanned at the time of transaction. D. Frequent-shopper cards are issued on the basis of market basket analysis. E. Frequent-shopper programs include a private-label credit card offered by a retailer.
Product cost includes all costs of the company
Indicate whether the statement is true or false
In today's Wall Street Journal, you see the Greek drachma (GRD) quoted at $0.003635. Yesterday, it was quoted at $0.003521. The drachma ________ by ________
A) depreciated; 1.14% B) appreciated; 3.05% C) depreciated; 3.05% D) appreciated; 3.24% E) depreciated; 3.24%
Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) The firm's noncallable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,225.00. (2) The company's tax rate is 40%. (3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock's beta is 1.20. (4) The target capital structure consists of 35% debt and the balance is common equity. The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock. What is its WACC? Do not round your intermediate calculations.
A. 8.48% B. 10.01% C. 7.80% D. 6.79% E. 7.63%