Offensive Strategic Market Plans Are Strategies That ________

question 37

Multiple Choice

Offensive strategic market plans are strategies that ________.

• A)have a 1-year time horizon
• B)are ineffective at growing sales revenue
• C)reduce the long-run share position
• D)limit short-run profit performance
• E)result in short-term profits without any additional investment

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Definitions:

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.

Net Present Value

A financial metric that calculates the present value of an investment's expected cash flows minus the initial investment cost.

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and satisfy its shareholders.