Campbell Soup

its cost of common equity, rs, is 14.5 percent; its marginal tax rate is 40 percent; and all of its new equity will come from retained earnings. We can calculate NCC’s weighted average cost of capital, WACC, as follows: 11 See John R. Graham and Campbell Harvey, “The Theory and Practice of Corporate Finance: Evidence from the Field,” Journal of Financial Economics, Vol. 60, no. 1, 2001, and the paper cited in Footnote 7. Interestingly, a growing number of firms (about 34 percent) also…

a nd t heir i mpact o n l ot sizes a nd in t he s upply chain. cycle invent ory E P ROM OTIO NS 1 0.4 S HOR T-TE RM D ISCO UNT ING : T RAD a t ime period o ver M anufac turers u se trade promo tions t o o ffer a discou nted price a nd soup may offer which t he d iscoun t is effective. For example, a m anufac turer o f c anned 5 t o J anuary 25. F or a price discou nt o f 10 p ercent f or t he s hippin g p eriod D ecemb er 1 p ercent discount. I n all purcha ses within…

goal. Decisions are important because scarcity implies that by making one choice, you give up another. A computer firm that spends more resources on advertising has fewer resources to invest in research and development. A food bank that spends more on soup has less to spend on fruit. Economic decisions thus involve the allocation of scarce resources, and a manager’s task is to allocate resources so as to best meet the manager’s goals. One of the best ways to comprehend the pervasive…

September, the fifth consecutive postwar record. . . . The unease here also stems from memories of when Germany last faced such levels of joblessness: 1933, when the unemployed were so desperate they begged in the streets for spare change, relied on soup kitchens for meals, and ushered the Nazis into power. Postwar Germany’s reaction was to create a massive welfare state, designed to squelch social unrest through social benevolence. “It’s more important to have modestly happy…