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kondaur [170]
3 years ago
11

What economic activities are not included in GDP?

Business
1 answer:
laiz [17]3 years ago
5 0
 
1. Illegal and unreported economic activity:  While goods such as illegal drugs, gambling, and prostitution are sold in markets, the transactions are hidden for obvious reasons.
 
2. Home production and bartered goods/services:  If cash doesn't change hands, the transaction will not be included in GDP.  One of the somewhat misleading aspects of GDP is that whether certain things are included depends not on the nature of the good or service, but whether it was (openly) exchanged for cash.  
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Securities issued by all of the following organizations are exempt from the registration requirements of the 1933 Securities Act
ss7ja [257]

Answer:

C. State and local governments

Explanation:

Securities are commercial debts or equity instruments sold to investors in the financial markets. Public-listed corporations or the government may issue securities as a way of raising capital.  The Securities Act of 1933 requires securities registered with the SEC and abide by the other provisions in the act, such as full disclosure of financial information.

However, not all securities issued must be registered with the SEC.  Exemptions are granted to certain types of securities. Financial instruments issued by or having government backing are considered to have the exception status.

3 0
2 years ago
WACC and Optimal Capital Structure F. Pierce Products Inc. is considering changing its capital structure. F. Pierce currently ha
den301095 [7]

Answer:

The firm's optimal capital structure is 80% Debt and 20% Equity.

The WACC at this optimal capital structure is 10.28%.

Explanation:

Note: See the attached excel file the computation of the weighted average cost of capital (WACC) at the optimal capital structure. Also note that the data in the question are merged together but they are sorted in the attached excel file before answering the question.

The optimal capital structure of a firm can be described as a combination of debt and equity financing that is the beat in which market value of the firm is maximized while its cost of capital is minimized.

Using the weighted average cost of capital (WACC), the optimal capital cost capital structure occurs at a point where the WACC is the lowest.

From the attached excel file, the lowest WACC is 0.1028, or 10.28%.  At this firm Market Debt- to-Value Ratio (wd) which is debt is 0.80 (i.e. 80%), and Market Equity-to-Value Ratio (ws) which is equity is 0.20 (i.e. 20%).

Therefore, the firm's optimal capital structure is 80% Debt and 20% Equity.

The WACC at this optimal capital structure is 10.28%.

Download xlsx
5 0
2 years ago
A disadvantage of corporations is that shareholders have to pay on profits.
olga_2 [115]

Answer:

taxes

Explanation:

just took the test

4 0
2 years ago
Expensive, high-quality products that are purchased infrequently often reach consumers through________.a. selective distribution
Lilit [14]

Answer:

b

Explanation:

highly-selective distribution.

6 0
3 years ago
ear Net Income Profitable Capital Expenditure 1 $ 14 million $ 8 million 2 18 million 11 million 3 9 million 6 million 4 20 mill
Maru [420]

Answer:

$42 Million

Explanation:

The computation of the total cash dividend is shown below:-

Year Net Income Profitable capital Expenditure Dividends

1        $14 Million       $8 Million                                   $6 Million

2        $18 Million     $11 Million                                    $7 Million

3        $9 Million      $6 Million                                     $3 Million

4         $20 Million   $8 Million                                    $12 Million

5        $23 Million    $9 Million                                    $14 Million

Total cash dividends                                                  $42 Million

8 0
3 years ago
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