The World's Economies Can Be Divided into Four Main Categories

question 96

Multiple Choice

The world's economies can be divided into four main categories according to their annual per-capita income levels: low-income, lower middle-income, upper middle-income and high-income economies. What category would the South Africa falls under?

• A) low-income
• B) upper middle-income
• C) high-income
• D) lower middle-income
• E) South Africa falls between low income and lower middle-income economies.

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Definitions:

FCFF

Free Cash Flow to the Firm, a measure of a company's financial flexibility that represents the amount of cash generated by a company that is available for distribution among all its security holders.

Tax Bracket

Categories of income tax rates that increase progressively with the amount of taxable income.

FCFE

Free Cash Flow to Equity (FCFE) is the amount of cash available to the equity shareholders of a company after all expenses, reinvestment, and debt payments have been made.

Intrinsic Value

The actual perceived value of a company, stock, currency, or product determined through fundamental analysis without reference to its market value.