Assume that a national restaurant firm called BBQ builds 10 new restaurants at a cost of $1

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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. What is the amount of economic investment that has resulted from BBQ’s actions? How much purely financial investment took place?

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Macroeconomics

ISBN: 9780077337728

19th Edition

Authors: Campbell Mcconnell, Stanley Brue, Sean Flynn, Flynn Mcconnell Brue

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