Which of the Following Are Elements Involved in Step 1

question 61

Multiple Choice

Which of the following are elements involved in Step 1 of the price-setting process?

• A) objectives and constraints
• B) estimation of demand, sales revenue, and price elasticity
• C) cost estimation, marginal analysis, and break-even analysis
• D) demand for the product class and brand, newness of the product, and competition
• E) market segmentation targeting, and positioning

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock, often receiving dividends before common shareholders.

Dividend Yield

A ratio in finance that reveals the yearly dividend payment of a company against its share price.

Growth Rate

The rate at which a company's sales, earnings, or other chosen financial indicator increases over a period of time.

Market Risk Premium

The additional return expected by an investor for holding a risky market portfolio instead of risk-free assets.