Final Exam Practice Problems 1. Firm ABC’s only outstanding debt is $100‚000 worth of coupon bond (market value). Its yield to maturity is 8%. Given that its tax rate is 40%‚ what is its effective cost of debt? Effective cost of debt = cost of debt * (1-tax rate) =8%*(1-40%)=4.8% 2. Firm ABC has a stock currently traded at $20. The next year’s dividend will be $0.20. The dividend growth rate is forecasted to be 6% forever. Risk-free rate is 3%‚ and market risk premium is 4%. Assume that Constant
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Publicity is a great way for Subway to promote products because by using celebrities who already love eating their sandwiches‚ they avoid paying for media services. Because they offer coupons‚ they also engage in sales promotion. These coupons can be found in coupon books such as‚ the Entertainment Book and the PayBack. Coupons are also published in the newspaper occasionally‚ most recently as February 14th‚ 2011. All Subway customers received a free cookie with any purchase ("Februany at subway‚" 2011)
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Task 1 At first‚ I disagree with this statement. I think Customer Relationship Management (CRM) is universally appropriate or applicable to all businesses. Customer relationship management refers to a series of processes‚ focused on initiating two-way communication exchanges with customers to have a detailed knowledge of their specific needs and buying patterns. The major benefit of a CRM system is that it helps business organizations in determining the type of customer best suited for the growth
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The company made cold list and hot list of the people which were below and above 45yrs of age have the income more than Rs. 15000. Company released the coupons in two leading business paper in Bombay and asked to the individual to fill the printed coupons and send it to within 10 days to get a free booklet on management of blood pressure. The coupons consists of name‚ age‚ income‚ profession‚ residential area and details of any health related problems were to be filled in. Most of the people who responded
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regardless of gender. Also anybody can accept free coupon by following Victoria’s Secret account on Facebook. Yan han‚ a 21-year-old girl who study in Los Angles‚ America. She said:" the “Free Panty” coupon of Victoria’s Secret is much better than any other coupon from other stores. Because in most situations you can only receive free items after buying something first. But I can just get a free panty by walking into the store and handing over the coupon." In this case‚ who would reject such a good
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lower product costs‚ partially offset by higher markdowns and coupon redemptions. Consumers might be more eager to cash in those coupons‚ Bed‚ Bath & Beyond’s primary marketing vehicle‚ in the recession‚ but they are also a reason to consider the company’s prospects may be better than most. In a post recessionary period with consumers not quite as bargain sensitive‚ the company shouldn’t have to distribute as many of those coupons with primary competitor Linens ’N Things ?€" another retailer fond
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announced in January to take out all of the coupon discount system. Instead‚ J.C. Penney would introduce “everyday low prices”‚ “month long values specials”‚ and “clearance events” every month. However‚ the result does not work well. In May‚ J.C. Penney announced their first-quarter report that dropped 18.9% of sales comparing with the same quarter last year. It was $163 million loss for only the first quarter of the year. J.C. Penney did not realize that the coupon strategy is like a symbol of J. C. Penney
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all about offer free coupon‚ discount‚ voucher‚ and so on. It is a tool that can incentive the market sell in short term period. “Sell promotion is an incentives designed tool to stimulate the purchase or sale of a product‚ usually in the short term (Smashiq‚ 2008)”. So it is used to accelerate short-term sales and also building brand awareness and encouraging repeat buying. However there are some promotion strategies that KFC Company normally will uses included printable coupons from online‚ discount
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by a clear white background with festive multicolored stars surrounding their updated content of seasonal and weekly sales. The purpose of the site is clearly stated with advertisements of children playing with toys‚ slide shows of daily deals and coupons‚ as well as extra links to common inquires such as Layaway‚ price matching‚ and job opportunities. The site ’s design is charming and well presented‚ but has a fair amount of content slowing down the loading time. Finally‚ entering Target.com was
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long time. Use coupons for a proper distribution of cost A consideration of making use of an online web store to get a name written in the database of Hello Fresh website and get your orders wanted to make purchases from. Meals can be accessible when you get your search on the search engine of the website that you access of Hello Fresh. You can then get an overall understanding of the way this website works once you understand what the particular arrangement is you require. Use of coupons is a common
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