The reason why retained earnings have a cost equal to rs is because investors think they can (i.e., expect to) earn rs on investments with the same risk as the firm's common stock, and if the firm does not think that it can earn rs on the earnings that it retains, it should pay those earnings out to its investors. Thus, the cost of retained earnings is based on the opportunity cost principle.
Answer the following statement true (T) or false (F)
True
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A non-threatening approach that allows the salesperson to gather information about the prospect before the call is the:
A) referral approach B) question approach C) product demonstration approach D) survey approach E) premium approach
Which of the following is an example of regional convergence?
A. Organization of the Petroleum Exporting Countries (OPEC) B. European Union (EU) C. North American Free Trade Agreement (NAFTA) D. Association of South East Asian Nations (ASEAN) E. All of these are examples of regional convergence.
How does unethical behavior in an organization affect its workforce?
A)It instills fear in employees making them more productive. B)It helps workers focus on the goal of profitability. C)It creates a workforce that is more informed and therefore, motivated. D)It creates a workforce that is cynical and resentful.
Pluto Inc., a car manufacturer, makes high-end, expensive sports cars. The company targets people who live life in the fast lane and are generally considered to have flashy personalities. In this scenario, Pluto is using ________ segmentation.
A. undifferentiated B. socioeconomic C. benefit D. demographic E. psychographic