Even Though Most People in the Original Target Market for Electric

question 51

Multiple Choice

Even though most people in the original target market for electric toothbrushes already knew how to brush their teeth,consumers still had some learning to do in order to make the best use of the new brushing technique.The electric toothbrush is an example of a ________.

• A)dynamically continuous innovation
• B)nonradical innovation
• C)competitive innovation
• D)continuous innovation
• E)discontinuous innovation

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Definitions:

Sustainable Growth Rate

The rate at which a firm can grow if none of its financial ratios change and it doesn’t raise any new equity by selling stock. The growth in equity created by earnings retained.

Dividend Payout Ratio

A financial metric that measures the percentage of net income a firm pays out to its shareholders as dividends.

Equity

The value of an ownership interest in a company, represented by the amount of money that would be returned to shareholders if all the assets were liquidated and all the company's debt was paid off.

Iterative

A process or procedure characterized by repetition, where subsequent iterations build upon the results of previous ones.