13. The metric that measures how well an enterprise is using customers to create
ID: 419243 • Letter: 1
Question
13. The metric that measures how well an enterprise is using customers to create short-term and l term value is ong- a. returm on investment b. return on customer c. return on equity d. quarterly product sales 14. Gupta and Lehmann's customer equity study showed that customer equity was measurably impacted most by: a. b. c. d. reducing the cost of new customer acquisition increasing customer retention rates raising product margins increasing stock prices 15. Traditional measures of financial success emphasize: a prioritizing long-term value over short-term value b. prioritizing short-term value over long-term value c. balancing short-term value with long-term value d. focusing on long-term value to the exclusion of short-term value 16. The actual economic value of any business enterprise can be measured in terms of: a. b. c. d. the discounted net present value of the future stream of cash flow the future value of the net present cash flow the discounted net present value of average past earmings the future value of past net cash flowExplanation / Answer
Answer 13: Option D
Explanation: Quarterly product sales tell a company how much they are utilizing their potential to create more sales by acquiring more customers or through existing customers.
Answer 14: Case study must be provided
Answer 15: Option B
Explanation: The traditional methods always focus on prioritizing the short term value over long-term value until the business is able to generate enough profits that more assets can be created and invested on the creation of long-term value.
Answer 16: Option A
Explanation: The economic value of a firm is best valued using all the future expected cash flows of the firm and discounting them back to compute the present value. The discount rate has to be appropriately chosen using the weights of equity and debt and is called the Weighted average cost of capital (WACC).
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