How much purely financial investment took place

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Reference no: EM13732382

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 $400,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 200,000 shares of stock at $40 per share.

Instructions: Round your answers to 1 decimal place.

a. What is the amount of economic investment that has resulted from BBQ’s actions? ________$ million.

b. How much purely financial investment took place? ________$ million.

Reference no: EM13732382

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