Help me answer the following questions correctly.,,,

Question1

True/False

All the same, if a company's interest rate on its borrowings goes down, its coverage ratio will go up.

Banks receive interest on their customer deposits.

Banks are required to pay interest on all deposits.

You can buy a company's stock when the company issues shares or when an existing investor sells his/her shares.

The purpose of capital requirements is to make sure that banks are earning a minimum return on equity capital.

The purpose of capital requirements is to make sure that banks can withstand defaults by their customers.

Demand deposits are more liquid than cash.

ABC Company has cash on its balance sheet. It decides to use the cash to purchase equipment. Compared to the original situation, ABC's leverage ratio is higher.

ABC Company has cash on its balance sheet. It decides to use the cash to purchase equipment. Compared to the original situation, ABC's leverage ratio is lower.

Banks can own bonds but cannot issue them.

When you deposit your salary into your checking account, you are lending money to the bank.

An underwriter is the corporation's secretary. He/she signs his/her name on all corporate documents directly under the president's signature.

Compensating balances refer to the compensation a bank pays to its corporate clients for holding deposits at the bank.

The S.E.C. sets minimum capital requirements for all public corporations.

Banks only make loans; they do not purchase securities.

If a company's price-per-share increases, its book value goes up.

"Double taxation" refers to the I.R.S. first taxing a corporation's revenue and then its profits.

A Eurodollar deposit involves depositing euros in an offshore bank and the bank creating a dollar deposit in return.

A bank is deficient in capital by $25 MM. It can cure the deficiency by borrowing $25 million in the inter-bank market and holding the funds in cash.

If a company borrows $1MM (from a bank) at a rate of 12% for one month beginning today, it will pay $10,000 in interest.

A trucking company plans to buy 100,000 gallons of diesel fuel in January. It can remove its risk by entering today into a forward contract with a counterparty to buy the fuel at $2.50/gallon.

A trucking company plans to buy 100,000 gallons of diesel fuel in January. It can remove its risk by entering today into a (cash settled) forward contract at $2.50/gallon, whereby it receives from the counterparty the difference between 2.50 and the spot price in January (x100,000) if the spot price is above 2.50, and pays the difference if it is below 2.50. x

Toys-4-U corporation has $5 million in assets and $1 million in debt. Its leverage ratio is 1.25.

Toys-4-U corporation has $5 million in assets and $1 million in debt. The ratio of its debt to equity is .25.

Suppose two counterparties enter into a forward contract to buy/sell a stock. All the specifics of the agreement are entered into the contract except the purchase/sale price.

A company begins the week with a leverage ratio of 1.25. During the week it issues additional (common) shares and uses the funds to purchase equipment (with no other changes). Its leverage ratio at the end of the week remains 1.25. x

A company begins the week with a leverage ratio of 1.25. During the week it issues additional (common) shares and uses the funds to purchase equipment (with no other changes). Its leverage ratio at the end of the week is greater than 1.25.

A company begins the week with a book value-per-share of $25. During the week it issues additional (common) shares at a price-per-share of $21. Compared to its (total) book value as of the beginning of the week, its new (total) book value is lower.

A company begins the week with a book value-per-share of $25. During the week it issues additional (common) shares at a price-per-share of $21. Compared to its (total) book value as of the beginning of the week, its new (total) book value is higher.

The further down the "corporate cash waterfall" you stand, the more risk you face of not receiving the money you expect or are promised.

XYZ company has a book value of $1billion and it has ten million shares outstanding, of which you own one hundred. The company splits each share into two. The total market value of your shares is now higher x.

Question 2

Designing an apple Watch Product

All of you purchase products and services every day, ranging from necessities, such as food, clothing, and shelter, to discretionary items, such as soda, music, and education. And marketers develop many of these products and services with you specifically in mindjust look at the stores in and around campus that cater to you.

Learning Objective. Define a target market and develop an apple watch product.

Defining an apple watch Product. The term Apple watch product can have more than one meaning. As far as marketing is concerned, when a product satisfies any one of the below three forms, it can be labeled as a "apple watch product":

(1) apple watch to the market: When a product has been sold in a market for the first time, even if it was available at other markets for a while, it is viewed as a new product (e.g., Jack in the Box stores in Atlanta metro area would be a new product, even though it is not a new product in other areas of the United States where it's been available for some time).

(2) apple watch to the company: A product is considered new when a product is not sold previously by a given company, even if similar products have been available from other companies (e.g., When Denver-based DAZBOG introduced tea, it was a new product with 25 varieties of full-leaf teas and herbal infusions).

(3) apple watch to everyone: When a product is a brand-new innovation, it is new to everyone and therefore it is a new product (e.g., Virtual reality headsets, smart watches, tablet computers and self-driving cars are examples of new products when they were first introduced).

Please note that due to the expense and risk involved in introducing apple watch products, most of the new products introduced each year are not radically new inventions, and the vast majority of them are in fact, line extensions.

Nature of the Activity. Design a apple watch product or line extension in the consumer goods industry (anything you buy at a retailer) by specifying its target market, marketing mix elements, and points of difference.

You will come up with an apple watch product idea based on your personal experiences as a consumer and your new role as a marketer. When designing your apple watch product, be as creative as you can. However, your new product idea must answer the following questions:

a.To whom will your product be sold? Please specify the characteristics (age, gender, income, health-consciousness, etc.) of your target market segments. Provide a rationale for the market segments you select. Is it attractive enough (large, growing, etc.) to warrant the expense of a marketing effort?

b.What is the product? Companies must develop the features and benefits for the products and services that customers desire. Please specify the features (such as the ingredients, form, size, packaging, etc.) and benefits of the product you think are important to consumers. Provide a rationale for the product you create.

c.How much will consumers pay for it? Companies must charge a price that target customers are able and willing to pay. Please specify the price paid for the quantity received by consumers. Provide a rationale for the price you want to charge.

d.How will consumers find out about it? How can you design an advertisement?

Companies must inform you that the product or service exists, where it can be purchased, and perhaps offer you a small inducement to try it. Please specify the advertising methods and message you will use to communicate to consumers about the product and the kinds of inducements (coupons, samples, etc.) you will offer them to try it. Provide a rationale for the promotions you want to use.

Please consider the following points:

What promotion mix will you use (personal selling, advertising, public relations, sales promotions - coupons, free samples, etc.)?

What media channels will you use to communicate your message?

What themes, images, and colors are suitable for your campaign?

e.Where will consumers buy it? Companies must make products available at locations where target customers are likely to buy it. Please specify the types of retail outlets or "place" where consumers in your target market are likely to buy the product.

f.How is your product different from those already on the market? Please specify the significant points of difference of your product. Provide a rationale for why your product is superior to those offered by the competition. Does your product provide overall customer value?

Marketing Lessons. This activity introduced you to the essential marketing concepts that marketing and product managers deal with on a daily basis. You need to conclude that when developing a new product, marketers must: (a) select a set of market segments to target, (b) specify the marketing mix, and (c) identify significant points of difference.

DESIGNING A PRODUCT HANDOUT

MARKETING PROGRAM AND POINTS OF DIFFERENCE

to WHOM WILL IT BE SOLD?

(TARGET MARKET)

To Whom?____________________________________________________

What is it?

(Product)

Specify features, benefits, form, size, etc. and why

How much will consumers

pay for it?

(Price)

Specify cost

and why

How will consumers find out about it?

(Promotion)

Specify methods to inform and generate trial and why

Where will consumers buy it?

(Place)

Specify types of retailers and why

How is it different from others?

(Points of Difference)

Specify why it is superior to the competition