Suppose in the Beginning of 2013, a Country Has a National

question 170

Multiple Choice

Suppose in the beginning of 2013, a country has a national debt of $8,000 billion. Its GDP in
2013 is $32,000 billion and its budget deficit of $1,600 billion. Compute its debt-GDP ratio at the end of the year.

• A) about 5. 0%
• B) about 20,0%
• C) about 25.0%
• D) about 30%

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Definitions:

Synergy

The concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts.

Earnings Per Share

A financial metric that divides net earnings available to common shareholders by the weighted average number of common shares outstanding.

Mergers and Acquisitions

A general term used to describe the consolidation of companies or assets through various types of financial transactions, including mergers, acquisitions, consolidations, tender offers, purchase of assets, and management acquisitions.

Management

The process of directing and controlling a group or organization to achieve predetermined objectives.