In 2014, the GDP of the United States Was Approximately

question 17

Multiple Choice

In 2014, the GDP of the United States was approximately

• A) $8 trillion less than the GDP of the 135 DVCs in that year.
• B) $8 trillion more than the GDP of the 135 DVCs in that year.
• C) twice the GDP of the 135 DVCs in that year.
• D) the same as the GDP of 135 DVCs in that year.

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Definitions:

Risk Premium

The extra return expected by an investor for holding a risky asset rather than a risk-free asset.

Flotation Costs

The costs incurred by a company in issuing new securities, including underwriting, legal, and registration fees.

Equity Capital

Funds raised by a company in exchange for shares of ownership in the company.

Component Cost

The rate of return required by investors for each component of a company's capital structure.