If a Company Knows How Much Each New Customer Is

question 41

Essay

If a company knows how much each new customer is worth,then they can estimate the total revenue produced by their presence on the social network.This is an example of a quantitative or __________ metric.

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Definitions:

Capital Cost Allowance

The annual depreciation expense that a company can claim as a deduction for tax purposes on its capital assets.

Cannibalization

The reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer.

Pre-Tax Cash Flow

The amount of cash that a company generates before accounting for taxes, used in evaluating its financial performance.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital where each category of capital is proportionately weighted.