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Desired capital stock is the level of capital stock that a firm needs to maximize its profits. It is obtained when the equation MPK = uc is balanced, where MPK is the marginal producitivity of capital and uc is the user cost. UC is obtained by rpk + dpk, where r is the expected real interest rate, d is the rate at which capital depreciates, and pk is the real price of capital goods.
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What is the desired outcome of investing in capital goods?
Study Island - The goods will assist in creating more capital.
Why there is Philippine Stock Exchange?
The Philippine stock exchange acts as an intermediary between the public individuals who have capital and the companies that need capital. The companies raise capital by offering shares on the exchange.
What is the stock adjustment model?
Stock adjustment model is one of ditributive lag modles where the desired level of Y is dependent on the current level of X.
What will cause the capital stock when it increases?
Increases in the stock of capital will cause which of the following?The demand of labor increases.The demand of labor decreases.Selected answer No change in the demand of labor.First increase then decrease the demand of labor
What is Harrad domar model in economic development?
It is the idea that the economic growth is dependent on capital-output ratio (k, calculated as: Total output produced/total capital invested i.e. efficiency) and the saving ratio of the population. The assumptions it makes are: - Output is a function of capital stock - The marginal product of capital is constant. - Capital is necessary for output - The product of the savings rate and output equals saving which equals investment - The change in the capital stock equals investment minus the depreciation of the capital stock It states that Rate of growth of GDP = Savings ratio/ Capital output ratio.
What is capital stock?
Desired capital stock is the level of capital stock that a firm needs to maximize its profits. It is obtained when the equation MPK = uc is balanced, where MPK is the marginal producitivity of capital and uc is the user cost. UC is obtained by rpk + dpk, where r is the expected real interest rate, d is the rate at which capital depreciates, and pk is the real price of capital goods.
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.
Is Capital stock asset or liability?
Capital stock is part of liability
What are taxes that are imposed on the total assessed value of the shares of stock in a business called?
Capital Stock (A+)
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.
What is journal for stock contributed as capital?
[Debit] Stock account xxxx [Credit] Capital xxxx
Is capital stock the same as common stock?
Yes
What is stock purchasing?
When you buy your desired choice of stocks.
What type of account is capital stock?
Capital Stock is an equity account. You may think of equity as ownership.
Definition of paid up capital stock?
Paid up capital stock is that share capital for which investors or shareholders has made full payment to acquire them.
Is it legal for a company not to issue any new capital stock to the public?
There is no requirement for a company to issue capital stock.
What is subscribed capital stock?
Subscribed share capital stock is that capital for which investors actually paid money or subscribed while unsubscribed capital is that part of issued capital for which nobody subscribed or nobody purchased stocks.
