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Marta_Voda [28]
3 years ago
10

An investment of $5000 in biotech common stock proved to be very profitable. at the end of 3 years the stock was sold for $25,00

0. what was the rate of return on the investment?
Business
1 answer:
Andrew [12]3 years ago
5 0
Thank you for posting your question here at brainly. The rate of return on the invest is 500%. 

ROI<span> is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different </span>investments<span>. The </span>return on investment<span> formula is: </span>ROI<span> = (Net Profit / Cost of </span>Investment<span>) x 100.
</span>
therefore: 25,000/ 5000 = 5 x 100 = 500%
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CaHeK987 [17]

The different pricing strategies are matched with the best scenarios below.

<h3>What are pricing strategies?</h3>
  • When selling a product or service, a company can employ a number of pricing tactics.
  • Senior executives must first assess the company's price position, pricing segment, pricing capacity, and competition pricing reaction strategy before determining the most successful pricing strategy for the company.

The scenario to the strategy it best illustrates is shown below:

1. When the Mays family went to Europe, they used a travel agent who worked out a trip that included airfare, hotels, and some tours all for one price.

Most Suitable Pricing Strategy: Bundling

2. Marquis Suites shows movies in a "living room" atmosphere with comfortable chairs and food and beverage service. It deliberately charges more than other theaters for this experience.

Most Suitable Pricing Strategy: Competition-based pricing

3. Chad is a do-it-yourself guy. He shops at Home Depot because, although they don’t usually run sales, he knows the store will offer the lowest price around on the tools he needs.

Most Suitable Pricing Strategy: Everyday low pricing (EDLP)

4. A major national retailer charges "full retail" for most of the lines it carries but runs "special sales" during which the company lowers its price.

Most Suitable Pricing Strategy: High-low pricing

5. When Walmart enters a new geographic area, the company undersells its more well-established competitors and eventually raises its prices once it has a loyal customer base.

Most Suitable Pricing Strategy: Penetration pricing

6. When Aaron was looking for mortgage lenders, he noticed that one major lender lowered their rates, and several others did the same within a few days.

Most Suitable Pricing Strategy: Price leadership

7. Larry Dietzel, a real estate agent, advised his clients to price their home at $199,900 when they listed with his agency.

Most Suitable Pricing Strategy: Psychological pricing

8. Overture Audio home theater systems can run as high as $100,000 but there are only a few companies offering the systems.

Most Suitable Pricing Strategy: Skimming price

9. Toyota’s approach to entering the U.S. market was to set a certain net profit margin, then determine what price the company had to offer to get Americans to buy its cars instead of domestic cars.

Most Suitable Pricing Strategy: Target costing

Therefore, the different pricing strategies are matched with the best scenarios.

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Complete question:

Decisions about pricing strategies should be set in conjunction with other marketing decisions about product design, packaging, branding, distribution, and promotion. All these marketing decisions are interrelated. Prices must be related to the cost of producing the product and prices are usually set somewhere above cost. But price and cost aren't always related. There are three major approaches to pricing strategy: cost-based, demand-based (target costing), and competition-based. Other pricing strategies include skimming price strategy, penetration strategy, everyday low pricing (EDLP), high-low pricing strategy, bundling, psychological pricing, and demand-oriented pricing. Match each scenario to the strategy it best illustrates.

1. When the Mays family went to Europe, they used a travel agent who worked out a trip that included airfare, hotels, and some tours all for one price.

2. Marquis Suites shows movies in a "living room" atmosphere with comfortable chairs and food and beverage service. It deliberately charges more than other theaters for this experience.

3. Chad is a do-it-yourself guy. He shops at Home Depot because, although they don’t usually run sales, he knows the store will offer the lowest price around on the tools he needs.

4. A major national retailer charges "full retail" for most of the lines it carries but runs "special sales" during which the company lowers its price.

5. When Walmart enters a new geographic area, the company undersells its more well-established competitors and eventually raises its prices once it has a loyal customer base.

6. When Aaron was looking for mortgage lenders, he noticed that one major lender lowered their rates, and several others did the same within a few days.

7. Larry Dietzel, a real estate agent, advised his clients to price their home at $199,900 when they listed with his agency.

8. Overture Audio home theater systems can run as high as $100,000 but there are only a few companies offering the systems.

9. Toyota’s approach to entering the U.S. market was to set a certain net profit margin, then determine what price the company had to offer to get Americans to buy its cars instead of domestic cars.

A. Psychological pricing

B. Bundling

C. Target costing

D. Penetration pricing

E. High-low pricing

F. Competition-based pricing

G. Price leadership

H. Skimming price

I. Everyday low pricing (EDLP)

7 0
2 years ago
which stage in a work-unit activity analysis focuses on the product, information, or service provided?
maria [59]

The stage in a work-unit activity analysis that focuses on the product, information, or service provided is the output phase, This is further explained below.

<h3>What is the output phase?</h3>

Generally, the output phase is simply defined as manufacturing or output in general.

In conclusion, The final deliverable is defined. The method of measuring the output is investigated.

Read more about the output phase,

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4 0
2 years ago
The next dividend payment by ZYX, Inc., will be $2.95 per share. The dividends are anticipated to maintain a 4 percent growth ra
Alona [7]

Answer:

9.09%

Explanation:

The required return of  ZYX, Inc shall be determined using the following mentioned formula:

r=[d(1+g)/MV]+g

In the given question

r=required rate of return of ZYX, Inc=?

d(1+g)=next dividend payment to be made by the ZYX, Inc=$2.95

MV=current selling price of share=$58

g=growth rate of dividend=4%

r=required rate of return=[$2.95/$58]+4%

r=required rate of return=9.09%

6 0
3 years ago
The original cost of a product is 75$. Inflation for the first year is 8 percent; for the second year, inflation is 10 percent.
jonny [76]

Answer:

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Explanation:

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3 years ago
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OverLord2011 [107]

Answer:

The price of money is a function of the prices of all other goods and services in the economy. Many economists proxy the price of money using the inverse of an aggregated price index. All else being equal, a higher price level implies a lower price of money; a lower price level implies a higher price of money

5 0
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