The stronger the brand is, the discount rate is ___________?
Correct answer: A. lower
- A. lower
- B. higher
- C. stable
- D. earned
Explanation
A strong brand generally produces more predictable and stable future cash flows, so investors apply a lower discount rate to those earnings. A higher rate would reduce the present value and is associated with greater risk.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Marketing
Marketing covers how organisations identify customer needs, create value and exchange products or services through suitable markets. Key concepts include market segmentation, targeting, positioning, consumer behaviour, the marketing mix of product, price, place and promotion, branding, product life cycle and differences between marketing and selling.
Practise Marketing
1,700 free Marketing MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Marketing questions
The 'brand asset valuator' key pillars include _________?
The assessment of actual impact of brand knowledge on differential aspect of marketing is called _________?
The way in which customer's think and act in terms of prices and market share is classified as __________?
The net present value is calculated by _________?
In value stages, the customer's mind-set should consider _________?
When customers do not react favorably for specific brand under same circumstances, is said to be __________?