1) Using the constant growth model a firms expected (D1) dividend yield is 3% of the stock price and its growth rate is 7%. If the tax rate is .35% what is the firms cost of equity? A. 10% B. 6.65% C. 8.95% D. More information is required. 2)For many firms the cheapest and most important source of equity capital is in the form of: A. debt. B. common stock. C. preferred stock. D. retained earnings.3) A firm has to consider many factors in setting its pricing policy. We list these as a six-step process. Which of the following is NOT one of these steps? A. Determining demand. B. Researching reference prices in the target market. C. Selecting a pricing method. D. Selecting the final price. E. Selecting the pricing objective. 4) Purchase decisions are based on how consumers perceive prices and what they consider to be the ________ pricenot the marketers stated price. A. current actual B. current sale price C. referent price D. last purchased price
Written on May 6th, 2018 by
1) Using the constant growth model a firms expected (D1) dividend yield is 3% of
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