Suppose Ford Motors managers would like to invest in a new production line and must determine a cost of capital for the investment
The beta for Ford is 1.185, the beta for the automobile industry is 0.97, the equity premium on the world market is assumed to be 6%, and the risk-free rate is 3%. Propose a range of cost-of-capital estimates to consider in the analysis.
What will be an ideal response?
Answer: The formula to use is the following:
Cost of Ford equity capital = risk free rate + beta times market risk premium.
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Which of the following is LEAST likely to happen at a full-service retailer?
A) Customers have access to alteration services. B) Gift wrapping services are offered. C) Customers seek and receive helpful guidance from trained sales associates. D) Customers handle their own checkout process. E) Product consultants are available to answer specialized questions.
A salesperson, after addressing all the objections, asks confidently "The next step in the process would be sign the agreement and begin the implementation process. Shall we move forward at this time?" This statement is an example of the ________ close.
A. alternative-choice B. compliment C. Direct D. minor-points E. standing-room-only
Assessment instruments can be used to
A. determine job performance for global assignments. B. train managers in global leadership. C. train managers to assess global arena performance. D. measure cross-cultural adaptability and global leadership competencies.
Select an industry sector of interest and use available data to estimate the minimum efficient scale (MES) of operations in it.
What will be an ideal response?