Marketing



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ABCO’s head of risk management now warns of focusing

ABCO’s head of risk management now warns of focusing on expected returns to the exclusion of risk measures such as variance. ABCO decides to measure return variance. a. For each ABCO subsidiary, compute the return variance with the standard formula var(˜r) = E[(˜r - r)2]. (i) The three economic scenarios are equally likely. (ii) The good economic scenario is twice as likely as the other two....

Account Management at YRC Worldwide: Choosing Customers Wisely Y

Account Management at YRC Worldwide: Choosing Customers Wisely YRC Worldwide is a Fortune 500 company that provides a full range of transportation services for customers across all U.S. industry sectors. YRC’s customers, which number more than 300,000, include industrial and consumer-goods manufacturers, large and small, as well as retailers, including those that operate on a regional or...

Accurately pricing a new issue is quite costly. Explain why

Accurately pricing a new issue is quite costly. Explain why underwriters desire a reputation for pricing new issues as accurately as possible. Describe the actions they take to ensure accuracy.

Adopting the perspective of an organizational buyer, carefully i

Adopting the perspective of an organizational buyer, carefully illustrate how the most economical source of supply might be the firm that offers the highest price but also the fastest and most reliable delivery system.

Akron, from the last example, is considering an exchange offer

Akron, from the last example, is considering an exchange offer where half of Akron’s outstanding debt ($25 million) is retired. The purchase of this debt would be financed by issuing $25 million in equity to the debt holders of Akron. Assuming debt policy that is consistent with the Hamada model, what will Akron’s new WACC be after the exchange offer?

Alpha Corporation earned $150 million in before tax profits in

Alpha Corporation earned $150 million in before tax profits in 1996. Its corporate tax rate is 35 percent. Daniel Reptella, who owns 20 percent of the firm’s shares, has a personal marginal tax rate of 40 percent. From Daniel’s perspective, what is the effective tax rate on Alpha’s profits if its entire after-tax profits are distributed as a dividend?

Although qualitative forecasting techniques are important in the

Although qualitative forecasting techniques are important in the sales forecasting process in many industrial firms, the marketing manager must understand the limitations of these approaches. Outline these limitations.

Although the bulk of the promotional budget of the business

Although the bulk of the promotional budget of the business marketing firm is allocated to personal selling, advertising can play an important role in business marketing strategy. Explain.

Although there is no empirical evidence to strongly support this

Although there is no empirical evidence to strongly support this hypothesis, some financial journalists have claimed that American managers are shortsighted and overly risk averse, preferring to take on relatively safe projects that pay offquickly instead of taking on longer-term projects with less certain payoffs. Assume the journalists are correct. a. Explain why managers who use a single...

An article in The Economist (Sept. 25, 1993, p. 93)

An article in The Economist (Sept. 25, 1993, p. 93) said, in part: Neither fish nor fowl, convertible bonds, which give investors an option to convert into equities, have been gaining popularity in America. There were $103 billion of them outstanding at the end of August, up from $52 billion in 1990. Why the enthusiasm? For an issuing company, convertibles have several good features. A firm can...