Increasing the promotional budget for a product

Assignment Help Financial Management
Reference no: EM13944487

Increasing the promotional budget for a product in order to increase awareness is not advisable in the short run under which of the following circumstances?

a. Production capacity is maxed out (200% plant utilization) and the company is stocking out of the product

b. One or more competitor has increased price

c. Demand in the segment is increasing

d. Accessibility is less than 80%

Reference no: EM13944487

Questions Cloud

Expected to affect any other future dividends : MMK normally pays an annual dividend. The last such dividend paid was $2.85, all future dividends are expected to grow at a rate of 8% per year, and the firm faces a required rate of return on equity of 13%. If the firm just announced that the next d..
Well-diversified portfolio that has expected return : Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of buying 1,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 17...
Concerning cash dividend payments by us corporations : Which of the following is true concerning cash dividend payments by US corporations
Effect on price per share of stock and shareholder wealth : Stock Repurchase. Sleight Corporation is evaluating an extra dividend versus a share repurchase. In either case, $6,000 would be spent. Current earnings are $6 per share, and the stock currently sells for $52 per share. Evaluate the two alternatives ..
Increasing the promotional budget for a product : Increasing the promotional budget for a product in order to increase awareness is not advisable in the short run under which of the following circumstances?
What is the expected rate of return of this asset : An asset has a 15% chance of a -10% return, a 25% chance of a 0% return, a 25% chance of a 5% returns, and a 35% chance of a 20% return. What is the expected rate of return of this asset?
Determining the ex-dividend date : Determining the Ex-Dividend Date. On Tuesday, December 8, Lippincott Power Co.’s board of directors declares a dividend of 75 cents per share payable on Tuesday, January 26, to shareholders of record as of Tuesday, January 12. What is the ex-dividend..
What should be the market price of bonds : Jones Corp’s outstanding bonds, which have a face value of $1,000, have 10 years remaining to maturity. The bonds’ coupon rate is 6%, and interest is paid semiannually. If investors require a rate of return equal to 5% to invest in similar-risk bonds..
How can they be used to manage foreign exchange risk : Assume you have just been hired as a financial analyst by Tennessee Sunshine Inc., a mid-sized Tennessee company that specializes in creating exotic sauces from imported fruits and vegetables. Why might stockholders be indifferent to whether or not a..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the most profitable price point

You are hired by the health care provider Parma Group. Your boss says, identify the most profitable price point for a new drug. The facts utilized for proper analysis are as follows: 2 million people are using the drug, a survey says for every yearly..

  Treasury bill-reasonable annualized risk-free rate

Suppose that US Treasury Bills have seven days left until maturity, have a face value of $75,650, and have a quoted YTM of 5%. What would be a reasonable annualized risk-free rate that could be derived from this US Treasury Bill?

  Determined the rate to apply overhead based on direct labor

Nations Shipping determined the rate to apply overhead based on direct labor hours would be $8. 40, and based on machine hours would be $5. 20. Job 43D used $12. 40 of direct materials, 0. 46 machine hours, and 18 minutes of direct labor at a cost of..

  Determine whether or not changes in the cost of capital

Analyze the reasons why the short-term project that you have chosen might be ranked higher under the NPV criterion if the cost of capital is high, while the long-term project might be deemed better if the cost of capital is low. Determine whether or ..

  About the bond valuation

An investor has two bonds in his portfolio that both have a face value of $1,000 and pay a 8% annual coupon. Bond L matures in 11 years, while Bond S matures in 1 year. What will the value of the Bond S be if the going interest rate is 5%? Why does t..

  Considered a financially leveraged firm

Which of the following is considered a financially leveraged firm?

  Accept projects based upon fluctuations in cost of capital

What qualitative considerations are important for a company seeking to raise capital? Answer this by considering the effect of leverage in your response. Specifically, what expected effects will additional leverage have on a company’s decision to acc..

  What types generate the highest acquisition costs

What types of bank liabilities generate the highest servicing costs? What types generate the highest acquisition costs?

  Create a delta neutral portfolio of call options

Create a delta neutral portfolio of call options and stock. Short 10,000 call options - How many shares would you buy or sell anda - What is the price of the option if it is a European call?

  What is bond value for the zero-coupon bonds

The expected return on the market is 12%. Bacon Everything, INC! has a current stock price of $65. There are 15 million shares outstanding. The beta for the stock is 1.6. Bacon Everything INC! has a plowback ratio of 40%. What is the cost of equity f..

  What is the present value of that annuity if discount rate

An investment will provide you with $100 at the end of each year for the next 10 years. What is the present value of that annuity if the discount rate is 8% annually? What is the present value of the above if the payments are received at the beginnin..

  Bullish on a particular security

You are bullish on a particular security and have $500 to invest. The stock is trading for $100. Call options with a strike price of $100 are trading for $1.00. You decide to invest your entire $500 by purchasing call options. How many options contra..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd