Which of the Following Is Added to Personal Income to Get

question 178

Multiple Choice

Which of the following is added to personal income to get national income?

• A) retained earnings
• B) personal interest income
• C) depreciation
• D) personal taxes

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Definitions:

Cost of Equity

The return a company must offer investors to compensate for the risk of investing in its equity, often estimated using models like the CAPM.

Growth Rate

The measure of an increase in a specific variable, such as revenue, within a particular period, often expressed as a percentage.

Risk Level

The degree of uncertainty associated with the returns on an investment, reflecting the potential for losses or lesser gains.

Cost of Equity

The return that shareholders require for investing in a company's equity, serving as a measure of the risk involved.