The US Department of Agriculture's Productivity Index in Terms of Farm

question 128

Multiple Choice

The U.S. Department of Agriculture's productivity index in terms of farm output per unit of farm labor had a value of 10 in 1950. By 2009, the value of the productivity index was close to

• A) 30.
• B) 80.
• C) 100.
• D) 120.

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Definitions:

FCFF

Free Cash Flow to the Firm (FCFF) is a measure of a company's financial performance that shows how much cash is available for distribution among all securities holders after paying taxes, reinvesting in the business, and meeting working capital needs.

FCFE

Free Cash Flow to Equity, a measure of how much cash can be paid to equity shareholders of the company after all expenses, reinvestment, and debt repayments.

Price-to-Book Ratio

A valuation metric comparing a company's current market price to its book value.

P/E Ratio

The price-to-earnings ratio is a valuation metric for a stock, calculated by dividing the market price of a share by the earnings per share, indicating how much investors are willing to pay per dollar of earnings.