Assume that a national restaurant firm called BBQ builds 10 new restaurants at a cost of $ 1 million per restaurant. It outfits each restaurant with an additional $ 200,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 200,000 shares of stock at $ 30 per share.  A) What is the amount of economic investment that has resulted from BBBQ's actions? ( in millions) B)How much purely financial investment took place?

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: An Introduction To Basic Macroeconomic Markets
Section: Chapter Questions
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Assume that a national restaurant firm called BBQ builds 10 new restaurants at a cost of $ 1 million per restaurant. It outfits each restaurant with an additional $ 200,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 200,000 shares of stock at $ 30 per share. 

A) What is the amount of economic investment that has resulted from BBBQ's actions? ( in millions)

B)How much purely financial investment took place? 

 

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