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What happens to the economy when the economy's capital stock increases?
Supposing that with capital you mean physical capital (all kind of physical investments like machines, and so on), it tends to increase the Gross Domestic Product (GDP), but increases in capital along time lead to lower increases in GDP.This is known in economics as the diminishing marginal returns.
What are the positive effects of the stock market on the us economy?
It is because the companies sell the stocks when they go public and keep the money as operating capital and never have to retun it to the stock holders or anyone else. They do not have t pay any interest or dividends. If the market looses confidence in the value of the stock the company cannot reise additional capital and it goes bankrupt.
Describe the three pillars of productivity growth?
1. The rate at which the economy builds up its stock of capital 2. The rate at which technology improves 3. The rate at which workforce quality (or "human capital") is improving **Student of K. Downing
What type of stock remains stable during declines in the economy?
A defensive stock
What are factors affecting capital accumulation in an economy?
determinants of capital accumulation
Capital market is barometer of an economy do you agree?
Yes. The Stock market is an approximate indicator of the strength of an economy.
For the purpose of calculating the cost of capital the capital components are what?
The principal components taken into account to calculate the cost of capital are the following: The dollar cost of debt, the dollar cost of preferred stock, and the dollar cost of common stock.
Is treasury stock the same as capital stock?
Treasury stock is contra of capital stock used by company to purchase own capital stock to reduce the paid in capital.
What happens to the economy when the economy's capital stock increases?
Supposing that with capital you mean physical capital (all kind of physical investments like machines, and so on), it tends to increase the Gross Domestic Product (GDP), but increases in capital along time lead to lower increases in GDP.This is known in economics as the diminishing marginal returns.
Is Capital stock asset or liability?
Capital stock is part of liability
How do you calculate capital stock when you have assets liabilities and retained earnings?
Beg. Retained earnings + NI - Div Paid = Ending RE
What is the best way to find the original price of a stock for capital gains tax purposes?
How do i find the price of a share on 01.06.1993 in order to calculate any capital gains tax liability
What are taxes that are imposed on the total assessed value of the shares of stock in a business called?
Capital Stock (A+)
How do you calculate net working capital?
How do you calculate net working capital?
What is contributed capital?
Capital received from investors for stock, equal to capital stock plus contributed capital. also called contributed capital. also called paid-in capital.
How do you calculate the after-tax cost of financing?
THE TARGET CAPITAL STRUCTURE FOR QM IS 43% COMMON STOCK, 13% PREFERRED STOCK, AND 44% DEBT. iF THE COST OF COMMON EQUITY FOR THE FIRM IS 18.6%, THE COST OF PREFERRED STOCK IS 10.4%, AND THE BEFORE TAX OF DEBT IS 7.8%, AND THE FIRM RATE IS 35%. What is QM's weighted average cost of capital?
How do you calculate the after tax cost of financing?
THE TARGET CAPITAL STRUCTURE FOR QM IS 43% COMMON STOCK, 13% PREFERRED STOCK, AND 44% DEBT. iF THE COST OF COMMON EQUITY FOR THE FIRM IS 18.6%, THE COST OF PREFERRED STOCK IS 10.4%, AND THE BEFORE TAX OF DEBT IS 7.8%, AND THE FIRM RATE IS 35%. What is QM's weighted average cost of capital?
