With capital-embodied technological progress, new capital goods become more productive, thus more valuable, but the production capacity of the existing capital goods declines comparatively and they become less valuable.
Answer:
The answer is $16 million
Explanation:
Outstanding shares = 40,000
Shares of deceased shareholder = 2,500
Amount borrowed = $1m
We calculate price per share:
This is,
1,000,000 ÷ 2,500
= $400
To get the total value of the firm:
[(40,000 - 2,500) × 400] + 1m
=(37,500 × 400) + 1m
= 15,000,000 + 1,000,000
= $16,000,000
The total value of the firm without taxes is $16 million.
Answer:
As the interest rate rises, the cost of a given investment project <u>rises </u>and businesses invest <u>less</u>.
Explanation:
The rise in interests will ultimately cause less economic growth. As the interest rate increases, the cost of a project will increase eventually. Even the products that would be used for the project will be subjected to interest hence, the project will become very costly.
People will eventually invest less because they wouldn't be able to pay the interests. Some people might take loans from banks to invest but ultimately they should have a probability of making enough money from the project to return the loan.
Answer:
False
Explanation:
If the student is studying in a school or college, the teachers have a right to call or email the parents regarding their progress in the school so that the parents get to know their children progress instead of avoiding to the greatest extent.
Without informing about the student progress, the parents always believe that their children perform their best in the school or in college which is not acceptable.