Ian Works in the Public Relations Function in His Company

question 8

Multiple Choice

Ian works in the public relations function in his company, and whenever he wants exposure for some aspect of his company, he contacts people he knows, such as Lisa, a reporter for the local newspaper, or Anthony, Melissa, and Stephanie at the local television stations. Ian has worked hard to develop these media contacts. In public relations, this relationship management is known as ________.

• A)external relations
• B)media relations
• C)public affairs
• D)corporate relations
• E)reputation management

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Definitions:

Crossover Rate

The discount rate at which two projects have the same net present value (NPV), used in capital budgeting.

IRR

Internal Rate of Return, a financial metric used to assess the profitability of potential investments, measuring the discount rate at which the net present value of costs and benefits equal zero.

WACC

Stands for Weighted Average Cost of Capital, a calculation used to assess the cost of a company’s financing by averaging the cost of its equity and debt, weighted by their proportion in the company’s capital structure.

WACC

Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.