Suppose a company has profits (NOPAT) of $150,000. ¾ of their capital is supplied by shareholders. This equity expects a 10% return on investment. ¼ of the capital comes from a bank at a charge of 5%. The company employs total capital of $1 million. What are WACC, cost of capital, and economic profit?
Suppose a company has profits (
Suppose a company is considering an email marketing campaign that is expected to cost $2500 and to increase revenue from $40,000 to $50,000. Baseline revenues (no marketing) are estimated at $20,000. The email marketing campaign is in addition to regular advertising costing $5000. The firm uses contribution to assess financial value which averages 50%. What is the financial value with advertising and email marketing, just advertising, and no marketing? What is the financial value attributable to marketing? What is MROI?
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