Macroeconomics 19th Edition by Campbell McConnell , Stanley Brue,Sean Flynn

Exercise 4

Assume that a national restaurant firm called BBQ buildS₁0 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 sellS₂00,000 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?