All of the following are economic factors that can cause a firm's price-earnings ratio to be higher than that of other firms in the same industry except:
a. when investors expect that the firm's strategy enables it to generate and sustain greater profitability for a given cost of equity capital
b. when the firm earns the same profitability but with lower risk and, therefore, a lower cost of equity capital
c. a firm's business model that enables it to generate faster growth in earnings provided the growth creates positive residual ROCE
d. a firm's business model that results in slower growth in earnings and this creates negative residual ROCE
C
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Which of the following is true of event sponsorships?
A. They are highly useful public relations tools. B. They are unsuitable for gaining affinity with target audiences. C. They are a poor platform from which to build equity and gain affinity with target audiences. D. They are not suitable platforms for building equity. E. They are typically inexpensive.
According to the text, a stakeholder is an end user of a system
Indicate whether the statement is true or false
Recurring costs include all of the following except
a. data conversion b. software maintenance c. insurance d. supplies
In manufacturing companies, a common decision facing managers is whether to make or buy some or all of the parts used in product assembly
Indicate whether the statement is true or false