Marketing



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A convertible bond can be converted into a specified number

A convertible bond can be converted into a specified number of shares of stock at the option of the bondholder. Assume that a convertible bond can be converted to 1.5 shares of stock. A single share of this stock has a price that follows the binomial process The stock does not pay a dividend between dates 0 and 1. If the bondholder never converts the bond to stock, the bond has a date 1 payoff of...

A day in the life of a business marketing manager

A day in the life of a business marketing manager involves interactions with managers from other functions in the firm. First, identify the role of R&D, manufacturing, and logistics functions in creating and implementing marketing strategy. Next, describe some of the common sources of conflict that can emerge in cross-functional relationships.

A European “Tootsie Square” is a financial contract, which, at

A European “Tootsie Square” is a financial contract, which, at maturity, pays off the square of the price of the underlying stock on which it is written. For instance, if the price of the underlying stock is $3 at maturity, the Tootsie Square contract pays off$9. Consider a two period Tootsie Square written on ABC stock. ABC stock is currently selling at $1 per share. Each period the price...

A firm has $100 million in cash on hand and

A firm has $100 million in cash on hand and a debt obligation of $100 million due in the next period. With this cash, it can take on one of two projects—A or B—which cost $100 million each. Assume that the firm cannot raise any additional outside funds. If the economy is favorable, project A will pay $120 million and project B will pay $101 million. If the economy is unfavorable, project A...

A firm has a senior bond obligation of $20 due

A firm has a senior bond obligation of $20 due this period and $100 next period. It also has a subordinated loan of $40 owed to Jack and Jill and due next period. It has no projects to provide cash flows this period. Therefore, if the firm cannot get a loan of $20, it must liquidate. The firm has a current liquidation value of $120. If the firm does not liquidate, it can take one of two projects...

A global strategy begins with a unique competitive position that

A global strategy begins with a unique competitive position that offers a clear competitive advantage. What steps can a global competitor take to ensure that the strategy is implemented in a consistent way in countries around the world?

A key goal in logistical management is to find the

A key goal in logistical management is to find the optimum balance of logistical cost and customer service that yields optimal profits. Explain.

A large industrial distributor of power transmission equipment e

A large industrial distributor of power transmission equipment embarks on a project to develop an e-commerce strategy. What lessons could it learn from consumer marketers in the design and operation of its Internet site?

A major U.S. electronics firm decides the best approach to

A major U.S. electronics firm decides the best approach to a global business strategy is to employ a multidomestic strategy. It will focus its efforts on China. Discuss some of the key threats the firm faces as it enters this market. How could it mitigate some of the risks associated with these threats?

A marketing research company found that 6 percent of its

A marketing research company found that 6 percent of its clients generated 30 percent of sales and nearly all of its profits. At the other end of the continuum, 70 percent of its clients provided annual billings (revenue) that were below break-even levels, because these customers required an extensive amount of service from research employees. The company took immediate action to terminate...