Use the Following to Answer Questions: Table: Data from Europia

question 28

Multiple Choice

Use the following to answer questions: Table: Data from Europia $$\begin{array} { l c } \hline \text { Account } & \text { Amount } \\\hline \text { Consumption expenditures } & \$ 9,000 \\\text { Business profits } & 2,500 \\\text { Exports } & 800 \\\text { Imports } & 1,000 \\\text { Wages and Salaries } & 8,000 \\\text { Government purchases } & 3,000 \\\text { Rent receipts } & 500 \\\text { Investment expenditures } & 2,000 \\\hline\end{array}$$
-(Table: Data from Europia) Based on the data in the table, what is GDP in the economy of Europia?

• A) $13,000
• B) $13,800
• C) $14,800
• D) $15,800

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Definitions:

Flotation Cost

The total costs that a company incurs when it issues new securities, including underwriting, legal, and registration fees.

Annual Dividend

The total amount of dividends a company pays to its shareholders in one year, usually presented on a per share basis.

WACC

Weighted Average Cost of Capital; a calculation of a company's cost of capital in which each category of capital is proportionately weighted.

Corporate WACC

The weighted average cost of capital for a corporation, reflecting the cost of its equity and debt financing.