Which of the Following Goods and Services Would Be Excluded

question 82

Multiple Choice

Which of the following goods and services would be excluded from the CPI?

• A) Legal services
• B) Used cars
• C) French wines sold in the U.S.
• D) Restaurant meals
• E) Shares of stock in U.S.corporations

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Definitions:

Flotation Costs

The costs incurred by a company when it issues new securities, including underwriting fees, legal fees, and registration fees.

Cost Of Capital

A company's calculation of the minimum return necessary to justify the cost of a capital project or investment.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of its assets and earnings.

Target Capital Structure

The optimal mix of debt, equity, and other securities that a firm aims to maintain for funding its operations.