Raising Prices for Unprofitable Customers Is a Reflection of the Cost

question 2

True/False

Raising prices for unprofitable customers is a reflection of the cost of doing business with them.

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Definitions:

Dividend Yield

A measure of how a company's annual dividend disbursement stands in relation to the price of its stocks.

Annual Cash Dividends

The total amount of cash payments made to shareholders from a company's earnings over one fiscal year.

Market Value

The prevailing market rate at which a service or asset is available for purchase or sale.

Par Value Common Stock

The nominal or face value assigned to common stock shares in the corporate charter, which may differ significantly from the market value.