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Simora [160]
3 years ago
13

General motors, in order to achieve a 15 to 20 percent profit on its investment, prices its automobiles accordingly. this approa

ch is called ________.
Business
1 answer:
coldgirl [10]3 years ago
5 0
<span>Target return pricing. The target rate of return pricing is a way of pricing such that you begin with a rate of return objective, such as 8% of sales revenue, and then you adjust the price structure to achieve that target rate. This method is commonly used by market leaders.</span>
You might be interested in
The value of the mutual fund's portfolio minus the mutual fund's liabilities divided by the number of shares outstanding is call
lara [203]

Answer:

Net Asset value (NAV)

Explanation:

Net Asset value (NAV) represent per share market value of the fund.It is calculated using the below formula

Net Asset value of fund=Value of mutual fund's portfolio-Mutual fund liabilities/Number of share outstanding.

Mutual fund portfolio normally includes all the cash and securities of a fund.

NAV is normally computed at the end of the end of each trading day based on the closing market prices of the fund portfolio.

6 0
3 years ago
Ana, a project manager, has been asked to estimate the cost of the project. She wants that cost estimate for the project to be a
satela [25.4K]

Answer:

v

Explanation:

3 0
3 years ago
A service contract for a video projection system costs $90 a year. You expect to use the system for three years. Instead of buyi
xenn [34]

Answer:

$245.09

Explanation:

A service contract for a video projection system costs $90 a year. You expect to use the system for three years.

Instead of buying the service contract, the future value of these annual amounts after three years if you earn 5 percent on your savings will be:

PV  

Ordinary Annuity

​  =C×[  ((1−(1+i)  ^−n ) / i ]

where

n = number of years = 3

i = interest rate = 5%

Present Value of the annuity = 90 x [ ((1 - (1+0.05)^-3) / 0.05] = $245.09

3 0
3 years ago
A _____ website structure is appropriate if visitors should view the webpages in a specific order, as in the case of training ma
Goryan [66]
<span>The design of the navigation within the </span>website determines the type of the structure of the website. Linear website structure has linear <span> navigation, which means that each page is simply linked to the one before.</span><span>
A linear website structure is appropriate if visitors should view the webpages in a specific order. The case in which the users need to complete training module 1 before attempting training module 2 is example of linear website. </span>
8 0
3 years ago
Consider the capital asset pricing model. The market degree of risk aversion, A, is 3. The risk premium is 2.25%. If the risk-fr
inna [77]

Answer:

SO expected return on Mkt Portfolio Rm = 10.75%

Explanation:

market degree of risk aversion A = 3

Var = 0.0225 = SD^2

Rf = 4%

What is expected return on Mkt Portfolio ie Rm??

According to CAPM, Rm-Rf = A*SD^2

where SD is Std Dev (Recall SD^2 = Variance)

A is market degree of risk aversion

So we have Rm-4% = 3*0.0225

ie Rm = 4% + 3*0.0225 = 10.75%

SO expected return on Mkt Portfolio Rm = 10.75%

3 0
3 years ago
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