Rely Battery Corporation makes batteries for motor vehicles. The Federal Trade Commission (FTC) learns that Chuck's Automotive Stores, a retail company that sells Rely's batteries, engages in deceptive advertising practices. What actions can the FTC take against Chuck's?
The Federal Trade Commission (FTC) can investigate the problem, and if, after the investigation, it believes that Chuck's has engaged in deceptive advertising, it can send a formal complaint to the alleged offender. Chuck's may agree to a settlement. If not, the FTC can conduct a hearing before an administrative law judge (ALJ). If the FTC succeeds in proving that Chuck's ads are deceptive, it can issue a cease-and-desist order requiring the advertising to stop. It might also impose a counteradvertising sanction, requiring Chuck's to issue new ads-in print, on radio, and on television-to inform the public about the earlier misinformation.?
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Which group in an organization usually makes most of the decisions about organizational structure?
A. technical analysts B. top management C. HR department D. middle-level managers E. supervisors
Which of the following best explains the goal of neuromarketers?
A) using subliminal messages to influence consumer decisions B) collecting data about responses to advertising and products by scanning consumers' brains C) observing and tracking consumer behavior on the Internet D) designing marketing research experiments using the Internet E) analyzing data from various sources to answer complex "what if" questions
A communication style difference noted between men and women is that men are more likely to
A) use conversation for rapport building. B) want empathy more than solutions. C) use talk to display knowledge and skill. D) compliment the work of a coworker.
LeCompte Learning Solutions is considering making a change to its capital structure in hopes of increasing its value. The company's capital structure consists of debt and common stock. In order to estimate the cost of debt, the company has produced the following table:
Percent financed Percent financed Debt-to-equity Bond Before-tax with debt (wd) with equity (ws) ratio = wd/ws = (D/S) Rating cost of debt 0.10 0.90 0.10/0.90 = 0.11 AAA 7.0% 0.20 0.80 0.20/0.80 = 0.25 AA 7.2 0.30 0.70 0.30/0.70 = 0.43 A 8.0 0.40 0.60 0.40/0.60 = 0.67 BBB 8.8 0.50 0.50 0.50/0.50 = 1.00 BB 9.6 The company uses the CAPM to estimate its cost of common equity, rs. The risk-free rate is 5% and the market risk premium is 6%. LeCompte estimates that if it had no debt its beta would be 1.0. (Its "unlevered beta," bU, equals 1.0.) The company's tax rate, T, is 25%.On the basis of this information, what is LeCompte's optimal capital structure, and what is the firm's cost of capital at this optimal capital structure? A. ws = 0.9; wd = 0.1; WACC = 11.73% B. ws = 0.8; wd = 0.2; WACC = 10.78% C. ws = 0.7; wd = 0.3; WACC = 9.11% D. ws = 0.6; wd = 0.4; WACC = 9.50% E. ws = 0.5; wd = 0.5; WACC = 11.37%