If Inputs Increase by 30% and Outputs Decrease by 15

question 18

Multiple Choice

If inputs increase by 30% and outputs decrease by 15%, what is the percentage change in productivity?

• A) 100% decrease
• B) 11.54% increase
• C) 34.62% decrease
• D) 15% increase
• E) 15% decrease

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Definitions:

Dividend Pricing Models

Financial models used to determine the value of a stock based on the dividends it is expected to yield, taking into account future dividends and the discount rate.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company, based on underlying characteristics and not market price.

Forecasted Cash Flows

Projected movements of cash in and out of a business, used for budgeting and financial planning.

Fixed Maturity

The predetermined date on which an investment, often a bond or other fixed-income security, matures and the principal is supposed to be repaid.