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When firms purchase new capital we call this _____

tatuchka [14]

Answer:

Business fixed investment

Explanation:

The <u><em>purchase by firms of new capital goods</em></u> such as machinery, factories, and office buildings. (Remember that for the purposes of calculating GDP, long-lived capital goods are treated as final goods rather than as intermediate goods.) Firms buy capital goods to increase their capacity to produce.

6 0

3 years ago

Read 2 more answers

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua

Fantom [35]

Answer:

Bond Price = $877.3835955 rounded off to $877.380

Explanation:

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and r or YTM will be,

Coupon Payment (C) = 0.064 * 1000 = $64

Total periods (n)= 25

r or YTM = 7.5% or 0.075

The formula to calculate the price of the bonds today is attached.

Bond Price = 64 * [( 1 - (1+0.075)^-25) / 0.075] + 1000 / (1+0.075)^25

Bond Price = $877.3835955 rounded off to $877.380

3 0

2 years ago

Three people invest in a business. The first two invest in the ratio 2:3, and the third person

Diano4ka-milaya [45]

Answer:

$15 million

Explanation:

The three investors' total investments would add up to 100% or 1.

The first two invested in the ration of 2:3

It means ;

Investor 1: 2/5

Investor 2: 3/5

If investor 3 invested twice as investor 1 and 2, then we can deduce that he invested ( 2/5 + 3/5) x 2

the new denominator is 10, meaning

Investor 1 had 2/10,

investor 2 had 3/10

investor 3 had 5/10

If total investments were $30 million, then the highest investor invested

5/10 x $30million

=0.5 x $30 million

=$15 million

5 0

3 years ago

A corporation acquires new funds only when its securities are sold in the

Varvara68 [4.7K]

C so sorry I’m wrong

8 0

3 years ago

United Resources Company obtained a charter from the state in January of this year. The charter authorized 206,000 shares of com

amid [387]

Answer:

United Resources Company

Stockholders section of the balance sheet at the end of the year:

Common Stock:

Authorized 206,000 shares at $3 par value

Issued 88,000 shares $264,000

Additional Paid-in Capital

($968,000 -364,000 + 136,000) 740,000

Treasury Stock ($78,000 - 24,000) (54,000)

Total Equity $950,000

Explanation:

a) The authorized common stock is stated in the balance sheet as a memorandum record. It does not form part of the calculation of equity since all the shares have not been issued.

b) Issued common stock is valued at 88,000 * $3 = $264,000

c) The difference in the par value and the issue price is recorded in the Additional Paid-in Capital Account. It is also where the increases and decreases in Treasury stock above or below par values are recorded.

d) Treasury Stock is a common stock contra account which records the repurchase and resale of common stock. Two methods are used. One recognizes the whole cost of treasury stock in the Treasury Stock account. It is called the costing method. The other method, called the par-value method, recognizes the above and below par value in the Additional Paid-in Capital.

7 0

3 years ago