According to Your Text, When Selecting a Target Market, Firms

question 51

Multiple Choice

According to your text, when selecting a target market, firms should consider three important factors: growth potential, level of competition, and

• A)proximity to the market.
• B)cultural factors.
• C)economic conditions.
• D)profitability timeframe.
• E)strategic fit.

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Definitions:

Required Return

The minimum rate of return that investors expect or require from an investment to make it worthwhile.

Annual Dividend

The total dividend payment a company makes to its shareholders in a year.

Dividend Growth Model

A valuation method used to estimate the value of a stock based on its expected future dividend payments and growth rate.

Dividends

Payments made by a corporation to its shareholders, typically from profits, as a distribution of earnings.