Factbites
 Where results make sense
About us   |   Why use us?   |   Reviews   |   PR   |   Contact us  

Topic: Rate of return pricing


Related Topics

In the News (Mon 17 Jun 19)

  
  Rate of return pricing - Wikipedia, the free encyclopedia
Target rate of return pricing is a pricing method used almost exclusively by market leaders or monopolists.
An unusual consequence of this pricing model is that to keep the target rate of return constant, the firm will have to continuously be changing its price as the level of demand changes.
If it’s predetermined rate of return requirement is amount A, B, then it will set its price at P*.
en.wikipedia.org /wiki/Rate_of_return_pricing   (466 words)

  
 Pricing - Wikipedia, the free encyclopedia
Pricing is one of the four aspects of marketing.
In economic terms, it is a price that shifts most of the consumer surplus to the producer.
The classic example of this is the pricing of the snack cake Twinkies, which were perceived as low quality when the price was lowered.
en.wikipedia.org /wiki/Pricing   (921 words)

  
 FCC Seeks Comment on Changes to Local Telephone Companies' Rate of Return to Reflect Marketplace Conditions
Since 1990, local telephone companies subject to rate-of-return regulation, which tend to be smaller, incumbent companies that serve rural and high cost areas, have been entitled to a rate of return of 11.25% for their provision of interstate access services.
The weighted average cost of capital is used to estimate the rate of return that the companies could earn on their investment in facilities used to provide regulated interstate services in order to attract sufficient capital investment.
The Commission's authority to prescribe new rates for the LECs still classified as dominant carriers and to propose changes to the low-end adjustment for price cap LECs is a mere vestige of outdated rate of return regulation.
www.fcc.gov /Bureaus/Common_Carrier/News_Releases/1998/nrcc8068.html   (1021 words)

  
 Defense Procurement and Acquisition Policy - Contract Pricing Reference Guide
Margin pricing is similar to mark-up pricing in that price is based on the relationship between cost and profit.
Price analysis is the process of examining and evaluating a proposed price to determine if it is fair and reasonable, without evaluating its separate cost elements and proposed profit.
From a pricing standpoint, technical specialists may have a good understanding of the costs necessary to build a deliverable and also of the types and sources of commercial products that may be available to satisfy a requirement.
www.acq.osd.mil /dpap/contractpricing/vol1intro.htm   (7507 words)

  
 Personal Finance: Money 101: Glossary
Portion of an option price that is in excess of the intrinsic value, due to the amount of volatility in the stock; sometime referred to as premium.
The price paid for a security plus the broker's commission and any accrued interest that is owed to the seller (in the case of a bond).
A measure of the excess return per unit of risk, where excess return is defined as the difference between the portfolio's return and the risk-free rate of return over the same evaluation period and where the unit of risk is the portfolio's beta.
money.cnn.com /services/glossary/t.html   (9340 words)

  
 Pricing - Encyclopedia.WorldSearch   (Site not responding. Last check: 2007-10-08)
The price/quantity relationship refers to the perception by most consumers that a relatively high price is a sign of good quality.
The greater the uncertainty surrounding a product, the more consumers depend on the price/quantity hypothesis and the more of a premium they are prepared to pay.
These include : price skimming, price discrimination and yield management, price points, psychological pricing, bundle pricing, penetration pricing, price lining, and premium pricing.
encyclopedia.worldsearch.com /pricing.htm   (919 words)

  
 Pricing Policy
Price elasticity of demand measures the percentage change in quantity demanded divided by the percentage change in price.
Suppose the price of gasoline is raised by 50% and the quantity demanded drops by 10%, price elasticity is.20 (-10% / +50%), i.e.
Competition-based pricing – Some firms follow the price leader, i.e., they copy the price of the firm that is the price leader in the industry.
academic.brooklyn.cuny.edu /economic/friedman/mmpricing.htm   (2055 words)

  
 Chapter 12
In pricing based on cost, the marketing manager can apply markup pricing (adding a percentage to the product’s cost to set the price), rate-or-return pricing (adding a desired rate of return on investment to the total cost of the product), and breakeven analysis (determining sales volume to cover total costs).
Pricing based on competition is primarily concerned with what the a firm’s competition prices products/services and then determining whether to price below, at, or above the competition.
Pricing based on customer value evaluates what the customer is willing to pay for a product/service based off of the value they perceive they will receive.
www.selu.edu /Academics/Faculty/smckay/mrkt303/s_chap12.htm   (763 words)

  
 Lansing State Journal   (Site not responding. Last check: 2007-10-08)
Markup pricing typically is used in retailing, where a certain percentage is added to the retailer's invoice price to determine the final selling price.
Cost-plus pricing most often is used to price jobs that are difficult to accurately cost in advance.
This method requires that a price be determined by adding a desired rate of return on investment to total costs.
www.lsj.com /news/business/p_020422_bocol_extra_p7.html   (536 words)

  
 Engineering 4102: Engineering Economics---Review of Basic Calculus Skills
Need to find Rate of Return i.e., interest rate that makes the present worth of the income stream equal to the present worth of the cost stream.
Therefore the rate of return is approximately 12%.
Since you can borrow funds for 10% interest, and the rate of return on your investment is 12%, the project is theoretically profitable.
www.ucs.mun.ca /~coadym/engr4102/contents/problem_9.html   (479 words)

  
 February 2004 Actuarial Review - Latest Research
CAPM may be familiar to those involved in rate filings, as it is often one of the key financial theories used in the regulation of insurance companies to determine a "fair rate of return." However, the new methods of CAPM estimation used in this study may not be widely known to actuaries.
They found that the returns on smaller stocks are influenced by less frequent trading and low information flow and as such are related not only to the current return on the market but to past returns on the market.
The authors speculate that the companies that write long-tailed lines may have a "natural hedge" against interest rate risk as their runoff liabilities tend to move in the same direction as interest rates, possibly leading to lower costs of capital.
www.casact.org /pubs/actrev/feb04/latest.htm   (1123 words)

  
 Rate Of Return Pricing Encyclopedia Article, Definition, History, Biography   (Site not responding. Last check: 2007-10-08)
Looking For rate of return pricing - Find rate of return pricing and more at Lycos Search.
Find rate of return pricing - Your relevant result is a click away!
Look for rate of return pricing - Find rate of return pricing at one of the best sites the Internet has to offer!
www.karr.net /search/encyclopedia/Rate_of_return_pricing   (691 words)

  
 Campbell R. Harvey's Hypertextual Finance Glossary   (Site not responding. Last check: 2007-10-08)
The price fixed by the clearinghouse at which deliveries on futures are invoiced; also the price at which the futures contract is settled when deliveries are made.
Short version of Euro rate differential, which is a Chicago Mercantile Exchange Futures contract that is founded on the interest rate spread between the U.S. dollar and the British pound, the German mark, or the Japanese yen.
Also called the internal rate of return; the interest rate that makes the present value of the cash flows from all the subperiods in an evaluation period plus the terminal market value of the portfolio equal to the initial market value of the portfolio.
www.duke.edu /~charvey/Classes/wpg/bfglosd.htm   (8347 words)

  
 Pricing Rate Of Return Guarantees In A Heath-Jarrow-Morton Framework (SMEALSearch) - Pal,Rangaswamy,Giles,Debnath   (Site not responding. Last check: 2007-10-08)
Pricing Rate Of Return Guarantees In A Heath-Jarrow-Morton Framework (SMEALSearch) - Pal,Rangaswamy,Giles,Debnath
We consider rate of return guarantees where the underlying rate of return is either i the rate of return on a stock investment or ii the short-terminterestrate.
We show thatdespite fundamental di erences in the underlying rate of return processes i or ii, the resulting pricing formulasfor the guaranteesare remarkablysimilar....
gunther.smeal.psu.edu /12515.html   (240 words)

  
 Rate of Return on Securities as supplied by EagleTraders.com
The rate of return on a security is a major factor associated with evaluating and selecting an investment.
The single-period rate of return is one such measure.
This rate is the percentage price appreciation plus the percentage cash return (current yield on a bond; dividend yield on a stock) during a given period.
www.eagletraders.com /advice/securities/rate_return_securities.htm   (315 words)

  
 The Asset Pricing Approach to the Rate of Return to Human Capital: An Equilibrium . . . - project (ResearchIndex)   (Site not responding. Last check: 2007-10-08)
The Asset Pricing Approach to the Rate of Return to Human Capital: An Equilibrium.
The Asset Pricing Approach to the Rate of Return to Human Capital: An Equilibrium (1999)
Abstract: this paper, we introduce a new framework for analysis of the rate of return to human capital.
citeseer.ist.psu.edu /522766.html   (266 words)

  
 Pricing of Rate of Return Guarantees on Multi-period Assets. (SMEALSearch) - Pal,Rangaswamy,Giles,Debnath   (Site not responding. Last check: 2007-10-08)
Pricing of Rate of Return Guarantees on Multi-period Assets.
The basis for this paper is the pricing of multi-period rate of return guarantees.
Keywords and phrases: Multi-period rate of return guarantees, Heath, Jarrow, and Morton term structure model of interest rates.
gunther.smeal.psu.edu /11645.html   (239 words)

  
 Knowledge King - Rate of return pricing   (Site not responding. Last check: 2007-10-08)
If it’s predetermined rate of return requirement is amount A,B, then it will set its price at P*.
That explains why this strategy is used only by market leaders and monopolists.
See also : pricing, production, costs, and pricing, marketing, monopoly
www.knowledgeking.net /encyclopedia/r/ra/rate_of_return_pricing.html   (449 words)

  
 Rate of return pricing -- Facts, Info, and Encyclopedia article   (Site not responding. Last check: 2007-10-08)
Rate of return pricing -- Facts, Info, and Encyclopedia article
Target rate of return pricing is a (The evaluation of something in terms of its price) pricing method used almost exclusively by market leaders or (Someone who monopolizes the means of producing or selling something) monopolists.
(The evaluation of something in terms of its price) Pricing
www.absoluteastronomy.com /encyclopedia/r/ra/rate_of_return_pricing.htm   (507 words)

  
 [No title]   (Site not responding. Last check: 2007-10-08)
ACLR Encourages “contrary” management incentives: not what is best for society or consumers Price should relate to delivering current services to customers Need to cross-subsidize due to requirement by government for universal provision of electricity e.g.
Over time, airline travel increased (D increased) Regulated airline price were “too high” especially on commuter flights Too few airlines, wanted more choice, more flights Regulation controlled too much: number of flights, destinations, cities served, prices.
Price Wars waged by “existing big firms” eliminated many new entrants and some older less powerful competitors (so even “no frills” airlines could not survive) Major airlines wanted to drop many unprofitable flights (eliminate cross-subsidizing) Could new airlines fill-in the gaps?
www.cba.nau.edu /campione-w/ECO284/Regulation.doc   (274 words)

  
 FMF | Summary: Bellwether OHR Research Focuses on MBS Pricing   (Site not responding. Last check: 2007-10-08)
This research represents an important contribution to this evolving field of study, and covers the MBS market, mortgage valuation and the rate of return, pricing and interest rate processes, and pricing and borrower processes.
One of the first research reports ever on the nonagency MBS market, written by two financial analysts from Bear, Stearns and Co., Inc. The authors, Nancy DeLiban and Brian P. Lancaster, discuss the evolution and development of various nonagency credit enhancement techniques that may be relevant to the agency market.
Three articles on mortgage valuation and rate of return, including a discussion of various ways to model mortgage default risk more accurately.
www.fanniemaefoundation.org /programs/jhr/v6i2-abstract.shtml   (274 words)

  
 The Effect of Rate-of-Return Regulation on Public Utility Pricing (ResearchIndex)   (Site not responding. Last check: 2007-10-08)
Although the effect of RoR regulation on two-part tariffs or peak-load pricing has been separately analyzed by many authors in some detail, the behaviour of regulated firm under combined two-part and peak-load pricing has not been studied until now.
This paper examines the effect of regulation on the rate structure and welfare under combined...
1 Optimal pricing with a budget constraint - the case of the t..
citeseer.ist.psu.edu /268941.html   (471 words)

  
 Production, costs, and pricing biography .ms   (Site not responding. Last check: 2007-10-08)
Production decisions concentrate on what goods to produce, how to produce them, the costs of producing them, and optimizing the mix of resource inputs used in their production.
This production information can then be combined with market information (like demand and marginal revenue) to determine the quantity of products to produce and the optimum price to charge.
calculate price based on the required rate of return on investment, or rate of return on sales
production.biography.ms   (200 words)

  
 Meeting Economic Goals (continuation)
Where markets determine prices of traded services, the prices are likely to fluctuate and remain unpredictable.
It is crucial that the prices remain consistent with inflation, but more important that they remain affordable.
The United States elected to use rate of return pricing.
cbdd.wsu.edu /kewlcontent/cdoutput/TR506/page10.htm   (423 words)

  
 SSRN-Pricing Rate of Return Guarantees in Regular Premium Unit Linked Insurance by David Schrager, Antoon Pelsser
We derive general pricing formulas for Rate of Return Guarantees in Regular Premium Unit Linked Insurance under stochastic interest rates.
First, we show the effect of stochastic interest rates can be interpreted as, what is known in the financial community as, a convexity correction.
Numerical results show the effect of this more sophisticated interest rate modelling is considerable.
papers.ssrn.com /sol3/papers.cfm?abstract_id=491204   (226 words)

  
 Rate of return pricing - Definition of word from Investor Dictionary - Define meaning of Rate of return pricing   (Site not responding. Last check: 2007-10-08)
Rate of return pricing - Definition of word from Investor Dictionary - Define meaning of Rate of return pricing
Effect of price limits on volatility and stock returns in emerging markets: evidence from the Johannesburg stock exchange.
Creating a winning bond strategy: with the right approach, bonds can achieve outstanding returns in a volatile market.
www.investordictionary.com /definition/rate+of+return+pricing.aspx   (394 words)

  
 Buying Stock And Rate Of Return   (Site not responding. Last check: 2007-10-08)
...of the rate of return on the stock to changes in the market index.
this is to generate a stock's expected rate of return -- what the market expects a...
Buying rate - Stock exchange and bank encyclopedia - In the securities trade, this generally means the stock exchange price at which there is a...
www.stock-trading-help.com /OPG/buying-stock-and-rate-of-return.html   (503 words)

  
 JMS Pricing Strategy Book Index
Absorption accounting example; Accounting rate of return; Accrual accounting; Aging market; Analysis – and experience, and results, and thinking; Assumptions; Authority.
Ideal price; Incentive; Income; Income before tax and fixed cost; Income statement; Incremental sales; Inelastic; Inflation; Interdisciplinary; Inter-functional understanding; Internal rate of return; International pricing; Intra-company; Intra-divisional; Intuition.
Rate-of return; rate of return on investment; Re-segmentation; Receivable; Receivables; Resource elements; Return on assets; Return on capital; Revenue; Risk; Rivalry.
www.pcez.com /~jmsc/business_book_index.html   (322 words)

  
 Engineering 4102: Engineering Economics---Review of Basic Calculus Skills
List the information given such as interest rate, number of periods, principal amount, etc.
Keep in the mind the definition of each interest factor to be used.
Rate of Return and Pricing (see Course Manual, Class 8 notes)
www.ucs.mun.ca /~coadym/engr4102/contents/problems.html   (190 words)

  
 EconPapers: Pricing rate of return guarantees in a Heath-Jarrow-Morton framework   (Site not responding. Last check: 2007-10-08)
EconPapers: Pricing rate of return guarantees in a Heath-Jarrow-Morton framework
Pricing rate of return guarantees in a Heath-Jarrow-Morton framework
This item may be available elsewhere in EconPapers: Search for items with the same title.
netec.wustl.edu /WoPEc/data/Articles/eeeinsumav:25:y:1999:i:3:p:307-325.html   (93 words)

Try your search on: Qwika (all wikis)

Factbites
  About us   |   Why use us?   |   Reviews   |   Press   |   Contact us  
Copyright © 2005-2007 www.factbites.com Usage implies agreement with terms.