1. Who has the ultimate control of the assets of a publicly-traded company like BNJ? Is it the Board? Stockholders? Creditors? Something external to the company? Please explain.
2. Using The Fortune 500 List, identify one company that uses Lowest-Cost Strategy and one company that uses Differentiation Strategy. Explain how these strategies work and why these particular companies use them.
3. You are about to purchase a 30-year bond, ($1,000 face value) with 4% annual coupon. If the current market rate (required rate of return) is 5%, at what price should you be willing to buy this bond? Assuming that this bond pays interest on an annual basis?