Which of the Following Reasons Would BEST Explain Why a Company

question 62

Multiple Choice

Which of the following reasons would BEST explain why a company would be interested in advertising its good or service on a syndicated show such as Deal or No Deal?"

• A)The game show is shown during prime time on the three major networks.
• B)The game show reaches a young adult audience,which is important to advertisers and is a difficult market to reach.
• C)The game show has attractive actors and actresses which helps enhance the image of products advertised on the show.
• D)The game show has much less clutter than network shows.
• E)The game show is viewed as educational and allows advertisers to reach a demographic segment that is elusive.

---

Definitions:

Payback

Payback is the period of time required for the return on an investment to "pay back" the sum of the original investment, often used as a measure of investment risk.

Cash Flow

Cash flow signifies the net amount of cash and cash-equivalents being transferred into and out of a business, crucial for assessing its liquidity, flexibility, and overall financial performance.

Project's Payback

A calculation that determines the duration required for an investment to generate cash flows or profits enough to recover the initial investment cost.

WACC

Weighted Average Cost of Capital; the average rate of return a company must pay its security holders to finance its assets.