A World View Titled "Export Ratios" Examines the Openness of Trade

question 57

Multiple Choice

A World View titled "Export Ratios" examines the openness of trade for several countries based on the trade to GDP ratio.According to the excerpt,which country exports the most as a percentage of GDP?

• A)United Arab Emirates.
• B)Sweden.
• C)The United States.
• D)China.

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Definitions:

Dividend Growth Model

A valuation method used to estimate the price of a company's stock by using predicted dividends and discounting them back to present value.

SML Approach

Refers to the Security Market Line approach, a graphical representation in the Capital Asset Pricing Model (CAPM) that depicts the relationship between risk and expected return for all securities.

Flotation Costs

Expenses incurred by a company in issuing new securities, including legal, administrative, and underwriting fees.

Computed NPV

The calculated Net Present Value based on a specific discount rate and series of cash flows.