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vredina [299]
3 years ago
7

Munoz Specialty Foods groups its customers by regions in the United​ States, such as​ Midwest, Northeast, and Southwest. For eac

h​ region, Munoz creates a different set of advertisements and promotions. On which of the following segmentation variables does the firm divide its​ market?
Business
1 answer:
galben [10]3 years ago
6 0

Answer:

The answer is: geographic segmentation

Explanation:

Geographic segmentation refers to a marketing strategy that divides the company's market into smaller markets on the basis of geography. Geographic segmentation can be done according to countries, regions, states, counties and cities. Some companies even go a little further and they break the cities into urban and suburban areas.

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Market failure occurs when a free market is unable to A) distribute resources efficiently.
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Business firms purchase items on credit because they cannot meet their obligations. true false
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Oddysseyware says the answer is FALSE

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Walmart initially used a focused cost leadership strategy to compete only in small communities by using sophisticated logistics
disa [49]

The response of local competitors was slow because they lacked the ability to marshal resources.

<u>Explanation:</u>

The focused cost leadership is a tactic in which businesses selling identical goods in a given market reduce their prices to raise sales and gain a competitive edge.  Rather than sacrificing on value or already investing scarce resources to develop a commodity, reducing prices is a safer way to draw consumers. Walmart used such strategy to establish an edge in smaller communities but local competitors response was time taking as the resources were available but coordination among resources to result into proper manufacturing or servicing was lacking.

4 0
3 years ago
Titan Mining Corporation has 6.3 million shares of common stock outstanding, 220,000 shares of 3.6 percent preferred stock outst
Shkiper50 [21]

The firm’s market value capital structure is $503,910,000.

The rate the firm should use to discount the project’s cash flows is 9.33%.

a.

We will begin by finding the market value of each type of financing. We find:

Market value of debt = MVD = 105,000*($1,000)*(1.07) = $25,750,000

Market value of preferred cost = MVP = 220,000*($83) = $18,260,000

Market value of equity = MVE = 6,300,000*($73) = $459,900,000

And the total market value of the firm is:

V = $25,750,000 + 18,260,000+ 459,900,000

V = $503,910,000

b.

So, the market value weights of the company's financing are:

D/V = $25,750,000/$503,910,000 = 0.0511

P/V = $18,260,000/$503,910,000 = 0.0362

E/V = $459,900,000/$503,910,000 = 0.9127

For projects equally as risky as the firm itself, the WACC should be used as the discount rate.

First, we can find the cost of equity using the CAPM. The cost of equity is:

RE = .031 + 1.15(.071)

RE = 0.1030, or 10.03%

The cost of debt is the YTM of the bonds, so:

P0 = $1,070 = $26.50(PVIFAR%,34) + $1,000(PVIFR%,34)

R = 2.228%

YTM = 2.228% × 2

YTM = 4.46%

And the aftertax cost of debt is:

RD = (1 - .22)(.0446)

RD = .0348, or 3.48%

The cost of preferred stock is:

RP = $3.60/$73

RP = .0493, or 4.93%

Now we can calculate the WACC as:

WACC = 0.0511(.0348) + 0.0362(.0493) + 0.9127(.1003)

WACC =0.0933, or 9.33%

Hence, The firm’s market value capital structure is $503,910,000.

The rate the firm should use to discount the project’s cash flows is 9.33%.

Learn more about equity valuation:

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7 0
2 years ago
In an effort to address the troubled economy, ..."For the ninth time in just over a year, the Federal Reserve is expected to cut
Georgia [21]

Answer:

decrease bank reserves; decrease the exchange rate and real GDP

Explanation:

The Federal reserve uses various monetary policies to regulate cash flow in the economy with a view of managing various indices like inflation, GDP, deflation, and so on.

Interest rate is one of the monetary policies that can be used to.vonttol the economy.

When interest rate is high cost of borrowing cash from commercial banks will be high so people are discouraged from borrowing. There is higher reserve in banks, and cash flow is restricted.

However in a situation where the economy is troubled the Federal Reserve will reduce interest rate.

This results in cheaper cost of borrowing funds, commercial bank reserves will reduce because of increased outward flow of cash.

As the cash in the economy is in excess the rate at which it exchanges for foreign currencies will fall.

This in turn results in more money being spent on foreign goods and will reduce real GDP

8 0
3 years ago
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