ECO 550 Final Exam
1.When retail bicycle dealers advertise and perform warranty repairs but do not deliver the personal selling message that Schwinn has designed as part of the marketing plan but cannot observe at less than prohibitive cost, the manufacturer has encountered a problem of ____.
2.Which of the following is (are) a basic principle(s) when estimating a project’s cash flows?
3.The weights used in calculating the firm’s weighted-average cost of capital are equal to the proportion of debt and equity ____.
4.In the constant-growth dividend valuation model, the required rate of return on common stock (i.e., cost of equity capital) can be shown to be equal to the sum of the dividend yield plus the ____.
5.The decision by the Municipal Transit Authority to either refurbish existing buses, buy new large buses, or to supplement the existing fleet with mini-buses is an example of:
6.The sentiment for increased deregulation in the late 1970’s and early 1980’s has been felt most significantly in the price regulation of