MARKETING
MARKETING
7th Edition
ISBN: 9781260087710
Author: Grewal
Publisher: RENT MCG
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Chapter 15, Problem 11MA
Summary Introduction

To discuss: Opinion of Person X on the given situation.

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You have been hired by a regional supermarket chain as the candy andsnack buyer. Your shelves are dominated by national firms such asWrigley’s and Nabisco. The chain imposes a substantial slotting fee toallow new items to be added to their stock selection. Managementreasons that it costs a lot to add and delete items, and besides, theseslotting fees are a good source of revenue. A small, minority-operated,local firm produces several potentially interesting snack crackers and aline of gummy candy, all with natural ingredients, added vitamins,reduced sugar, and a competitive price—and they also happen to tastegreat. You’d love to give the firm a chance, but its managers claim theslotting fee is too high. Should your firm charge slotting fees? Areslotting fees fair to the relevant shareholders—customers, stockholders,vendors?
Choose a publicly-traded company, and then estimate your company's common stock price, using one of the valuation models presented in the assigned readings or outside readings. (If you want to analyze a dividend paying company, you can find a robust list at http://www.dividenddetective.com/big_dividend_list.htm.) Defend your choice of model, and explain why it is appropriate to use for your company's stock. Be sure to explain how you arrived at any assumptions regarding values used in the model. Determine whether your company appears to be correctly valued, overvalued, or undervalued based on your company's stock current price and model result. Check Yahoo Finance for current stock prices. Finally, explain why your company's stock appears to be over-, under-, or correctly valued.
There is a debate on conflicts of interest that exist between certain bond ratings agencies, such as Moody’s and Standard & Poor’s, and the corporation’s bonds that they rate. There is also a debate on conflicts of interest that exist between financial firms, such as Goldman Sachs and J.P. Morgan, and the corporation’s equity that rate. Discuss strategies that would reduce these conflicts of interest.
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