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Briefly Explain Each of the Three Methods Used to Determine

question 135

Essay

Briefly explain each of the three methods used to determine a transfer price.


Definitions:

Share Classes

Different types of stock in a company, each offering specific rights, dividends, or ownership values.

Required Rate Of Return

A rephrased definition: The minimum return investors expect from an investment, considering its risk level.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, often expressed as a percentage.

Expected Capital Gains Yield

The forecasted price appreciation on an investment or asset, typically expressed as an annual percentage.

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