Managers often ignore base rates in favor of how well a particular example matches their expectation. ______can overrule the logic of probability.

A. Availability
B. Representativeness
C. Adjusting
D. Heuristics


B. Representativeness

Business

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Which of the following variables indicates a measure of cumulative profitability over time?

a. Retained earnings (balance sheet)/total assets b. Earnings before interest and taxes/total assets c. Working capital/total assets d. Market value of equity/book value of total debt e. Sales/total assets

Business

Dividends yield is a market strength ratio

Indicate whether the statement is true or false

Business

Unlike a marketing research problem, a management decision problem:

a. makes use of the marketing research objective. b. provides insightful decision-making information. c. focuses on problems that are much broader in scope. d. tends to be more information oriented than action oriented.

Business

Super Solutions Inc. just paid a dividend equal to $3.00 per share. Its stock sells for $33.00 per share, it is growing at an annual rate equal to 6 percent, which is expected to continue long into the future. What is Super's cost of retained earnings?

A. 9.09% B. 15.64% C. 15.09% D. 9.64% E. 14.58%

Business