Predatory Pricing

question 95

Multiple Choice

Predatory pricing

• A) is often an inexpensive way for a large firm to drive smaller firms out of a market.
• B) is usually quite effective at driving smaller firms out of a market.
• C) is illegal under antitrust laws.
• D) is a form of price leadership.

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Definitions:

Dividend Yield

An economic indicator reflecting the yearly dividends paid by a firm in comparison to its current share value.

Cash Dividends

Cash distributions from a company to its shareholders, usually derived from earnings.

Treasury Stock

Treasury stock consists of shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Dividend Yield

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price, providing insight into the income generated from an investment.