When Designing a Successful Promotion, a Savvy Marketer Would

question 28

Multiple Choice

When designing a successful promotion, a savvy marketer would:

• A) Understand the break-even point
• B) Identify the gap
• C) Establish a goal
• D) Both A & B
• E) A, B & C

Comprehend how resource constraints influence project selection based on NPV.

Grasp the basics of the Accounting Rate of Return (ARR) and its application in project evaluation.

Apply different capital budgeting techniques to evaluate and compare mutually exclusive projects.

Understand the concept of net cash flows in capital budgeting, including what is and isn't included.

---

Definitions:

Dividend Yield

A benchmark in finance that compares the annual dividend output of a company with its stock price.

Annual Dividend

The total amount of dividends a company pays to its shareholders in a given fiscal year.

Current Stock Price

The latest trading price of a company's shares on the stock market.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the owner to vote at shareholder meetings and receive dividends.