One-Product<span> Companies. i belive
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Answer:
The correct answer is C
Explanation:
Word of mouth is defined as the advertisers and marketers who seek to establish or create something worth talking regarding and then actively encourage the people to talk regarding it.
Organic word of mouth (termed as Organic WOM), is defined as the word of mouth that naturally happen, when the person become himself the advocate as they are happy with the product and have a desire to share the support.
So, in this case, the beth who searching fro lotion tries few brands, but when she finally finds the product or lotion which suits her skin. She tells her close friends regarding it. Therefore, it is an example of Organic Word of Mouth.
Answer:
Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 10%. The company's weighted average cost of capital is 18%. What is the terminal, or horizon, value of operations
Terminal value = $1,783,333.33
Explanation:
Terminal value = FCF3/(WACC � g2)
FCF3 = FCF2 x 1.07 = $100,000 x 1.07 ? $107,000
= $107,000/(.13 - .07)
Terminal value = $1,783,333.33
Answer: d. internal rate of return
Explanation:
The Internal Rate of Return can be a very useful method for measuring the viability of a product because it takes into account the magnitude and timing of cashflows when it discounts it to the current period to find out if it will lead to a higher NPV than zero.
The other methods have their limitation. The payback period does not take into account the entire lifetime but rather stops as soon as the project pays back and the other two do not take into account the timing of the cashflows.
