Question

Suppose two types of firms which to borrow in the bond market firm of type a are good financial growth and relative leelo is the appropriate premium over the risk-free rate of lending to this firm is 2% firms of type B are in poor financial health and a relative Lee Harris the appropriate premium over the risk-free rate of lending to this firm is 6% as an investor you have no other information about these firms accept that type a and type b firms exist in equal number

Answer 1

Answer:

Explanation::1. Income Method GNPFC = Compensation of employees + Rent + Interest + Undistributed Profits + Dividend + Net

Factor Income from Abroad + Consumption of fixed capital = 1850 + (400 +500 +900 + 200) + (-) 50+ 100 = 3900

CRORE Note: o GNPFC = NNPFC + Consumption of fixed capital o NNPFC = Compensation of employees + Rent +

Interest + Undistributed Profits + Dividend + Net Factor Income from Abroad o Compensation of employees is

income from work which includes wages and salaries in kind and cash, and contribution to social securities