An Office Supply Store Can Buy a Desk for $300

question 19

Multiple Choice

An office supply store can buy a desk for $300.If the store owner sells the desk for $450,what is the markup based on the selling price?

• A) 15 percent
• B) 20 percent
• C) 25 percent
• D) 33 percent
• E) 50 percent

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Definitions:

NPV Projects

Projects evaluated based on the Net Present Value method, which calculates the present value of expected cash flows minus the initial investment.

Stock Split

An action by a corporation to break up its present shares into more shares, aiming to improve the tradability of the shares.

Market Price

The price at present for the exchange of an asset or service on the open market.

Paid In Surplus

The amount of money paid by investors for shares above their nominal value during the issuance of shares, reflecting the additional equity capital that is not registered as share capital.