Answer the following statements true (T) or false (F)
1. The basic shortcoming of EBIT-EPS analysis is that this model focuses on the maximization of earnings rather than on the maximization of owner wealth as reflected in a firm's stock price.
2. The basic shortcoming of EBIT-EPS analysis is that this model focuses on the maximization of stock returns rather than on the maximization of share price.
3. Minimizing the weighted average cost of capital allows management to undertake a larger number of profitable projects, thereby further increasing the value of a firm.
4. Optimal capital structure is the capital structure at which the weighted average cost of capital is minimized, thereby maximizing a firm's value.
5. An increase in fixed operating and financial cost results in an increase in risk, since the firm will have to achieve a higher level of sales just to break even.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. TRUE
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With advertising tracking research, respondents are shown:
A) the entire ad, but without the brand name being visible B) a brief portion of the ad that includes one mention of the brand name C) a brief portion of the ad or stills of the ad with the brand name removed or hidden D) a series of ads so they will not know which ad is being studied
The interest earned on the principal amount only is referred to as ______________________________
Fill in the blank(s) with correct word
A formal request for a purchase from the requesting department of a business is known as a purchase requisition
Indicate whether the statement is true or false
What do marketers consider a crucial component in a video?
A) product placement integrated into the script B) the appearance that it was shot by an amateur C) a hook that makes a message resonate with an audience D) dialogue that must not be seen as entertaining E) proprietary information that must not be shared