What is a possible risk involved with licensing?
What will be an ideal response?
A company has less control over a licensee than it would over its own production facilities; the licensee may use the brand or patent in a way the company does not approve of.
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Satisfying different consumer needs and wants can require different marketing programs. Name the four cultural dimensions that differentiate countries, as identified by Hofstede
What will be an ideal response?
Stock X has a beta of 0.7 and Stock Y has a beta of 1.7. Which of the following statements must be true, according to the CAPM?
A. Stock Y's realized return during the coming year will be higher than Stock X's return. B. If the expected rate of inflation increases but the market risk premium is unchanged, the required returns on the two stocks should increase by the same amount. C. Stock Y's return has a higher standard deviation than Stock X. D. If the market risk premium declines, but the risk-free rate is unchanged, Stock X will have a larger decline in its required return than will Stock Y. E. If you invest $50,000 in Stock X and $50,000 in Stock Y, your 2-stock portfolio would have a beta significantly lower than 1.0, provided the returns on the two stocks are not perfectly correlated.
In the high-involvement approach to management where is the power pushed to?
*a. lower levels of employees b. higher levels of employees c. higher levels of senior management d. lower levels of senior management
Your girlfriend plans to start a new company to make a new type of cat litter. Her father will finance the operation, but she will have to pay him back. You are helping her, and the issue now is how to finance the company, with equity only or with a mix of debt and equity. The price per unit will be $10.00 regardless of how the firm is financed. The expected fixed and variable operating costs, along with other information, are shown below. How much higher or lower will the firm's expected EPS be if it uses some debt rather than only equity, i.e., what is EPSL - EPSU? Do not round your intermediate calculations. 0% Debt, U 60% Debt, LExpected unit sales290,000 290,000Price per unit$10.00 $10.00Fixed costs$1,000,000 $1,000,000Variable cost/unit$3.50 $3.50Required
investment$2,500,000 $2,500,000Shares issued at $10/share250,000 100,000% Debt0.00% 60.00%Debt, $$0 $1,500,000Equity, $$2,500,000 $1,000,000Interest rateNA 10.00%Tax rate35.00% 35.00%? A. $02.48 B. $02.35 C. $03.10 D. $02.85 E. $02.60