If married and unmarried women respond similarly to a sale on perfume, these hypothetical segments fail the differentiable criterion for useful market segments.
<h3><u>
What are Market Segments?</u></h3>
- People who are gathered together for marketing purposes are referred to as market segments.
- Market segments are subsets of a broader market that frequently group people together based on one or more shared traits.
- Companies and their marketing departments define a target market for their goods and services using a variety of factors.
- Marketing experts use a unique strategy to each market segment after thoroughly understanding the demands, way of life, demography, and personality of the target consumer.
In a market that is otherwise uniform, a market segment is a group of customers with comparable preferences. These clients may consist of people, families, companies, organizations, or a combination of several types.
Therefore, the hypothetical segment in the question fail the differentiable criterion for useful market segments.
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Answer:
Cost of equity is 11.2%
WACC is 8.74%
Explanation:
The formula for cost of equity is given below:
Cost of equity=risk free rate+(Beta *risk premium)
risk free rate is the treasury bill rate of 4%
Beta is 0.9
market risk premium is 8%
cost of equity=4%+(0.9*8%)=11.2%
WACC=Ke*E/V+Kd*D/V*(1-t)
Ke is the cost of equity of 11.2%
Kd is the cost of debt of 5%
t is the tax rate of 40% or 0.4
E is the equity weighting of 70% or 0.7
D is the debt weighting of 30% or 0.3
V is the E+D=0.7+0.3=1
WACC=11.20%
*0.7/1+(5%*0.3/1*(1-0.4)
WACC=7.84%
+0.90%
=8.74%
Answer:
Corporation
Explanation:
The corporation is a legal business entity that is separated from its owners with respect to the assets and liabilities.
In this business entity, they have the right to received, owned or even transferred the property who are entered into contracts with the other legal entities or with the individuals
In addition, this business entity is to be sued and sued to the individual or other business entities depending upon which entity or individual it is dealing with in the court.
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