Integrated marketing communications calls for recognizing all touchpoints where the customer may encounter the company and its brands

Direct marketing involves efforts to stimulate positive interest in an organization and its products by sending out news releases, holding press conferences, staging special events, and sponsoring newsworthy activities put on by third parties

Indicate whether the statement is true or false

Harry Trading Company must choose its optimal capital structure. Currently, the firm has a 20 percent debt ratio and the firm expects to generate a dividend next year of $5.44 per share. Dividends are expected to remain at this level indefinitely

Stockholders currently require a 12.1 percent return on their investment. Harry is considering changing its capital structure if it would benefit shareholders. The firm estimates that if it increases the debt ratio to 30 percent, it will increase its expected dividend to $5.82 per share. Again, dividends are expected to remain at this new level indefinitely. However, because of the added risk, the required return demanded by stockholders will increase to 12.6 percent. Based on this information, should Harry make the change? A) Yes, since the value of the firm will increase by $1.23 per share. B) No, since the value of the firm will decrease by $1.23 per share. C) Yes, since the value of the firm will increase by $0.25 per share. D) No, since the value of the firm will decrease by $0.25 per share.