Answer: The correct answer is "c. employs customer relationship management strategies.".
Explanation: Customer relationship management strategies involve a management model of the entire organization, based on customer satisfaction (or market orientation according to other authors). It is an approach to manage the interaction of a company with its current and potential customers.
Answer:
The debt-equity ratio need to be 1.01 for the firm to achieve its target WACC
Explanation:
In order to calculate the debt-equity ratio we would have to calculate the following formula:
debt-equity ratio=Weight of debt/Weight of equity
To calculate the Weight of debt we would have to use the formula to calculate the WACC as follows:
WACC = Wd×Rd×(1-t)+We×Ke
Therefore, according to the given data:
11.20% = Wd×8.70%×(1-35%)+(1-Wd)×16.80%
11.20% = Wd×5.655%+16.80%-16.80%×Wd
11.145%×Wd = 5.60%
Weight of debt=0.5025
Weight of equity=1-Weight of debt
Weight of equity=1-0.5025
Weight of equity=0.4975
Therefore, debt-equity ratio=0.5025/0.4975
debt-equity ratio=1.01
The debt-equity ratio need to be 1.01 for the firm to achieve its target WACC
Answer:
C. $1000
Explanation:
The computation of the approximate market value is shown below:
Current yield = Annual coupon payment ÷ market value
8% = ($1,000 × 8%) ÷ market value
8% = $80 ÷ market value
So, the market value is
= $80 ÷ 0.08
= $1,000
Hence, the approximate market value is $1,000
Therefore the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered