Marketing Research Methods

Marketing and advertising has a direct affect on sales by reducing price sensitivity. If a customer likes and is satisfied with a product, they are more likely to recommend that product to a friend. Marketing is best when it delivers a value to customers efficiently and effectively. Researchers agree that qualitative techniques define and describe, […]

The Impact of Marketing

Marketing firms should focus their campaigns on what generates sales. The best campaigns are those that influence product purchases. If consumers dislike the campaign, but it sells product better than favored campaigns, then the advertisement would be considered a success. The goal of any campaign is to generate sales. The ideal campaign should build trust, […]

International Finance

International Finance International finance deals with more than individual markets by including managing exposure to exchange rate, and financing international capital marketing and budgeting. Additionally, foreign exchange focuses on aspects such as political risk, legal, cultural, and taxation. Corporate finance relates to the financial activities of a corporation. The goal of corporate finance is to […]

Initial Public Offering (IPO)

Initial Public Offering Initial public offerings (IPOs) are transactions in which businesses publicly sell their common stock within an inefficient market. In the IPO market, sellers often have more company information than buyers and insider trading is considered legal. The day in which the IPO begins trading, the stock price is likely to close higher […]

Trade-off and Pecking-order Theories

Trade-off and Pecking-order Theories A profitable company requires less need for external financing. To satisfy financial needs, firms will often turn to debt. A profitable company usually relies on less debt. However, according to the trade-off theory, the more cash flow a profitable firm has, the more debt it will generate. As the debt capacity […]

Market Efficiency Theory

Market Efficiency Theory Market efficiency was formulated by Eugene Fama in 1970, labeled as efficient market hypothesis. His theory suggests that stock and market value are based on publicly available information. Investors invest with the goal that their investment will generate a positive return on their investment. An efficient capital market is when a stock […]

Diversification of Portfolios

Making an Investments I agree with this statement. It is the decision of the employee to decide where to place their finances and trust. In regards to the Enron scenario, considering there were many options for the employees to choose from, they could have taken their investment and placed it elsewhere. Alternatives for investment options […]

Analyzing Project Feasibility

Making a Business Case It is important to calculate the profit estimate when taking on new projects. Determining the net present value (NPV) of a project helps determine if a project should be accepted or rejected. The NPV is an important method to use in concluding the value of projects. The NPV formula determines the value of […]

Dividend and Non-Dividend Stock Valuation

Dividend and Non-Dividend Stock Valuation Investors who invest in stocks often like to receive returns on their investment in the form of dividends. However, not all companies opt to offer dividends to their investors. There are three variables that affect the valuation of a dividend and non-dividend paying stocks and how stock valuation is influenced. […]

Loan Evaluation

Financial Ratio Evaluations Determining the ratio level of a company is a predictor of failure for small businesses, and obtaining data can be difficult. Financial ratios are effective for comparing different types of financial information. Short-term solvency financial ratios should be examined to determine whether a small business is an ideal business for a loan. […]