Assume that a national restaurant firm called BBQ builds 15 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 300,000 shares of stock at $30 per share. Instructions: Round your answers to 1 decimal place. a. What is the amount of economic investment that has resulted from BBQ's actions? million b. How much purely financial investment took place? million

Assume that a national restaurant firm called BBQ builds 15 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 300,000 shares of stock at $30 per share. Instructions: Round your answers to 1 decimal place. a. What is the amount of economic investment that has resulted from BBQ's actions? million b. How much purely financial investment took place? million

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

Chapter27: Investment, The Capital Market, And The Wealth Of Nations

Section: Chapter Questions

Problem 5CQ

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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?
Which of the following are stock variables? Which are flow variables? A. capital B.per-capital GDP C. deprecation D.investment
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Using quarterly data from 1947 to the present, graph residential fixed investment relative to GDP a. Compare the graph of residential investment relative to GDP to a graph of the civilian unemployment rate. What happens to residential investment during recessions? In this respect, is residential investment similar to or different from other types of investment? b. During the two decades after World War II, there was an upsurge in population growth and household formation known as the “baby boom.” The baby boom was followed by a “baby bust” during which population growth slowed. How are these demographic trends connected to the behavior of residential investment relative to GDP shown in your graph?
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