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It is more important to estimate future earnings than the future earnings multiplier.
Target Return On Investment Pricing
Pricing strategy where the price is set based on the desired return on investment.
Standard Markup
The common percentage added to the cost price of goods to determine their selling price.
Cost-plus Pricing
A pricing strategy where the selling price is determined by adding a specific markup to a product's cost to ensure profit.
Standard Markup Pricing
A pricing method where a constant percentage markup is applied to the cost of a product to set its sale price.
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