The Manager of View Your World, a High- End Window

question 73

Multiple Choice

The manager of View Your World, a high- end window manufacturer, notices that the cost to purchase glass for their windows in the spot market has fallen. As a result of the change, which of the following is true?

• A)The manager has less of an incentive to integrate forward.
• B)The manager has more of an incentive to integrate forward.
• C)The manager has more of an incentive to integrate backward.
• D)The manager has less of an incentive to integrate backward.

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Definitions:

Current Yield

A financial metric that calculates the annual interest income from an investment as a percentage of its current market price.

Dividend Yield

A metric that indicates the annual dividend payment of a corporation as a proportion of its share price.

Discount Yield

A measure of a bond's return, calculated as the bond's discount from its face value divided by its face value, expressed as a percentage.