The Measure of a Firm's Effectiveness in Using the Resources

question 128

Multiple Choice

The measure of a firm's effectiveness in using the resources allocated to its marketing effort is called

• A)gross margin.
• B)marketing revenue analysis.
• C)gross expenditures.
• D)return on marketing investment.
• E)market share analysis.

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Definitions:

Cost of Equity

Cost of equity is the return a company requires to decide if an investment meets capital return requirements and can be seen as the return on equity that shareholders expect for their investment risk.

Flotation Cost

The total costs incurred by a company in issuing new securities, including underwriting, legal, registration, and other expenses.

Cost of Capital

The rate of return a company must pay to its shareholders and debt holders, representing the cost of obtaining funds to finance its operations.

Long-Term Funds

Investments or sources of financing that are provided or required for a duration exceeding one year.