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When Scentsation Introduced a New Air Freshener,the Company Sent Emails

question 63

Essay

When Scentsation introduced a new air freshener,the company sent emails to people asking for referrals.People referring five friends to the company's promotional website received free merchandise and were entered into a sweepstakes to win a year's supply of the product.Explain what this technique is and why marketers use it.


Definitions:

EPS

Earnings Per Share, a financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Target Capital Structure

The ideal mix of debt, equity, and other financing sources a company aims to maintain to fund its operations and growth.

Optimal Capital Structure

The most favorable mix of debt and equity financing that minimizes the company's cost of capital and maximizes its value.

EPS

Earnings Per Share, a financial metric used to indicate the profitability of a company on a per-share basis.

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