Recommend entering market for strategic reasons

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Reference no: EM132068839

1. Planners often recommend entering a market for "strategic" reasons because the:

A) Company is facing too much competition in its original market

B) Company may have valuable follow-on investments in the new market

C) Immediate investment has a positive net present value

D) Manager has a personal interest in a particular market

2. The sustainable rate of growth assumes the:

A) Debt-equity ratio is held constant

B) Market to book ratio increases

C) Dividend payout ratio increases

D) External debt remains constant

Reference no: EM132068839

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