Zephyr Inc

question 63

Multiple Choice

Zephyr Inc. sells wind based systems for generating electricity. The company pays no dividends, but you estimate the stock will be worth $50 per share 5 years from now and you require a 15% rate of return for stock investments of this type. What price should you be willing to pay for this stock?

• A) $12.50
• B) $24.86
• C) $43.48
• D) $57.50

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Definitions:

FAB Sequences

Stands for Features, Advantages, and Benefits; a sales technique that links product features to their advantages and the benefits for the customer.

Preparation

The process of getting ready for a specific event, activity, or undertaking by planning and arranging the necessary components.

Customer Understanding

The process and result of comprehending customers' needs, preferences, and behaviors.

Trial Close

A technique used in sales to gauge a potential buyer's interest or objections by asking for their opinion or commitment before the final close.