The Expected Value Model Is Used to Determine _____ Prices

question 62

Multiple Choice

The expected value model is used to determine _____ prices where the price charged reflects the _____.

• A)bid;lowest cost
• B)bid;highest profit
• C)value;lowest cost
• D)value;highest profit

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Definitions:

Dividend Payout Ratio

A financial ratio that shows the proportion of earnings a company pays out to shareholders in the form of dividends.

Internal Growth Rate

The growth rate a firm can maintain with only internal financing.

Growth Determinant

A factor that is critical to the expansion of a company or economy, such as technology, capital, and human resources.