The higher the firm's flotation cost for new common equity, the more likely the firm is to use preferred stock, which has no flotation cost, and reinvested earnings, whose cost is the average return on the assets that are acquired.

Answer the following statement true (T) or false (F)


False

Business

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Typical goals for frequency or loyalty programs include all of the following, except:

A) build brand parity B) induce cross-selling to existing customers C) differentiate a parity brand D) preempt the entry of a new brand

Business

Define "social contract ethics."

What will be an ideal response?

Business

When viewing the market from a buyer's point of view, "communication" corresponds to the ________ component of the marketing mix

A) people B) price C) product D) promotion E) place

Business

Renault paid 1 billion USD to acquire a 25 percent ownership stake in the Russian automaker AvtoVAZ in 2008. Just one year later, Russian Prime Minister Vladimir Putin threatened to dilute the Renault ownership stake unless it contributed more money to prop up AvtoVAZ, which was then experiencing a significant slide in sales. This is an example of ________ risk.

A. political B. currency C. economic D. management

Business