The <u>most likely outcome</u> when a firm is thinking about adding a product to its product line is D. The new product can be advertised alongside existing products
<h3>What is product advertising?</h3>
Product advertising:
- Is a management effort geared towards creating a demand for a product.
- Promotes consumer awareness.
- Fosters consumer interest in the product.
- Encourages consumers to make purchase decisions quickly as they see the product.
Thus, most likely, adding a product to the product line will help the new product to be advertised alongside existing ones.
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<h3>Question Completion with Answer Options:</h3>
A. It will be difficult to manufacture the product.
B. The company will have to work hard to build up the brand.
C. The new product is certain to be accepted by the market.
D. The new product can be advertised alongside existing products.
E. It will take a long time for customers to feel loyal to the product.
Answer:
earnings per share = $0.67
Explanation:
the earnings per share = stock price / multiple value = $10 / 15 = $0.67
When you read that a stock is selling at a multiple of X, it means that the stock price is currently X times the current earnings per share. In this case, since the stock price is $10, to calculate the EPS you must divide 10 by the multiple value.
The product benefits to be highlighted in the marketing based on demographic characteristics are
- beneficial to particular age
- beneficial to particular working class
- beneficial to particular gender etc
<h3>What is the demographic segmentation?</h3>
In marketing, this refers to the segmenting of customers according to gender, age, ethnicity, family size, religion etc.
The use of demographic segmentation in marketing helps to provide the needs and want to consumers based on the demograph gathered from them.
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Answer:
$29 per stock
Explanation:
WACC=PBIT*(1-tax)/Market value of firm
10%=$20,000,000*(1-40%)/Market Value of the firm
Market Value of the firm=$20,000,000*60%/10%=$120,000,000
Stock price for all shares=$120,000,000*60%=$72,000,000
Stock price per share=$72,000,000/2,500,000=$29 per share
