The total value of commodity a produced in country x increased from $500,000 in 2011 to $700,000 in 2012. according to laura, a student of economics, the share of commodity a in real gdp of 2012 should be higher than that of 2011.which of the following, if true, would strengthen laura's argument? a. the quantity of commodity a produced in 2011 was higher than in 2012.b. only a fraction of commodity a produced in 2012 was consumed in the same year. c.the average price level in the economy remained stable over the two years. d.the scale of production in 2012 was smaller than in 2011.e. the total amount of inputs used in the production of commodity a was higher in 2011 than in 2012.

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805