A Car Dealership Marks Up All New Automobiles by 15

question 72

Multiple Choice

A car dealership marks up all new automobiles by 15%. What was the original wholesale cost of a car with a sticker price at this dealership of $22,500? Round your answer to the nearest cent.

• A) $19,565.22
• B) $25,875.00
• C) $3,375.00
• D) $18,700.00

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Definitions:

Dividend

A distribution of a portion of a company's earnings decided by the board of directors to its shareholders.

Risk Aversion

A preference for avoiding risk, where individuals or entities prioritize certainty and are reluctant to engage in investments with uncertainty.

Expected Return

The anticipated value or profit from an investment over a given period of time.

Beta

Beta is a measure of a stock's volatility in relation to the overall market, indicating the level of risk associated with the stock’s price changes.