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3 years ago

When firms purchase new capital we call this _____

Business

2 answers:

tatuchka [14]3 years ago

6 0

Answer:

Business fixed investment

Explanation:

The purchase by firms of new capital goods 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.

aleksandrvk [35]3 years ago

6 0

When firms purchase new capital we call this Business fixed investment.

Business Fixed investment is the purchase of new capital goods by firms which include building, installations, vehicles, technology, etc. Firms buy capital goods to improve or increase future productions which can be very vital to the growth of the firm.

<h2>Further Explanation</h2>

Capital goods are also classified as tangible assets and are also referred to as intermediate goods or economic capital.

Generally, investment is when a person spends some money to expand or start a new project or to acquire assets to create incomes and increase value over time.

Investment can be used to describe any mechanisms that are put in place to generate income which could include the purchase of bonds, real estate property, and many others. Machines, buildings and other facilities important in the process of production are also classified as an investment.

The productions of goods and services that others can purchase to produce goods and services may also be categorized as an investment.

Firms purchase new capital goods (factories, office building) to grow or expand their businesses, which in turn increases production and brings more profit.

Therefore, when firms purchase new capital we call this Business fixed investment.

LEARN MORE:

Which current asset financing policies/approaches asserts that all of a firm's fixed assets brainly.com/question/13916170
CAPM is the abbreviation of brainly.com/question/1213208

KEYWORDS:

new capital
capital goods
firms
office building
machinery

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A company that has been growing rapidly announces that it is splitting its stock 3:2 and increasing its cash dividend by 20%. Pr

olga55 [171]

Answer:

quarterly dividend payment = $1.20 per share

Explanation:

given data

splitting its stock = 3:2

increasing cash dividend = 20%

Stock price = $60

Dividend yield = 10 %

solution

we get here first Dividend that is express as

Dividend = Dividend yield × Market Price ..............1

put here value and we get

Dividend = $60 × 10%

Dividend = $6

and we know split ratio is 3:2

so it mean it increase by 1.5 time

so After Stock Split share price will be

share price = $6 ÷ 1.5 ..................2

share price = $4

and when annual dividend amount is increase = 20%

so annual rate will be now

annual rate per share = $4 x 120% ....................3

annual rate per share = $4.80

so here quarterly dividend payment will be

quarterly dividend payment = $4.80 ÷ 4 ......................4

quarterly dividend payment = $1.20 per share

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