Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 24, Problem 13APA
To determine
Identify the gross investment, depreciation, and net investment.
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The present value of JECK Co.'s expected free cash flow is $90 million. If JECK has $25 million in debt, $4 million in cash, and 3.8 million shares outstanding, what is its share price?
What is the ratio of real assets to total assets in the table found in Step 2?
4) Mitsven Surfboard Inc. is a company in San Diego that shapes and sells surfboards. In 2018 their accounts were as
follows: total revenues $150,000; cost of inputs $75,000; wages paid to employees $35,000; profits to owner
$25,000, taxes paid by company $5,000. The building and the equipment used for production are property of the
company, and no new building or new equipment was purchased in 2018. The value added produced by Mitsven
Surfboard Inc. in 2018 was
A. $150,000
B. $75,000
C. $65,000
D. $10,000
Answer:
5) Consider the accounts of Mitsven Surfboard Inc. described in question 4). Applying the income approach to GDP
that we have studied in class, the depreciation (or consumption) of fixed capital for the company in 2018 was
A. Zero.
B. $10,000
C. $65,000.
D. $75,000
Answer:
Chapter 24 Solutions
Macroeconomics
Ch. 24.1 - Prob. 1RQCh. 24.1 - Prob. 2RQCh. 24.1 - Prob. 3RQCh. 24.1 - Prob. 4RQCh. 24.2 - Prob. 1RQCh. 24.2 - Prob. 2RQCh. 24.2 - Prob. 3RQCh. 24.2 - Prob. 4RQCh. 24.2 - Prob. 5RQCh. 24.3 - Prob. 1RQ
Ch. 24.3 - Prob. 2RQCh. 24.3 - Prob. 3RQCh. 24.3 - Prob. 4RQCh. 24.3 - Prob. 5RQCh. 24.3 - Prob. 6RQCh. 24.4 - Prob. 1RQCh. 24.4 - Prob. 2RQCh. 24.4 - Prob. 3RQCh. 24 - Prob. 1SPACh. 24 - Prob. 2SPACh. 24 - Prob. 3SPACh. 24 - Prob. 4SPACh. 24 - Prob. 5SPACh. 24 - Prob. 6SPACh. 24 - Prob. 7SPACh. 24 - Prob. 8SPACh. 24 - Prob. 9SPACh. 24 - Prob. 10SPACh. 24 - Prob. 11SPACh. 24 - Prob. 12SPACh. 24 - Prob. 13APACh. 24 - Prob. 14APACh. 24 - Prob. 15APACh. 24 - Prob. 16APACh. 24 - Prob. 17APACh. 24 - Prob. 18APACh. 24 - Prob. 19APACh. 24 - Prob. 20APACh. 24 - Prob. 21APACh. 24 - Prob. 22APACh. 24 - Prob. 23APACh. 24 - Prob. 24APACh. 24 - Prob. 25APACh. 24 - Prob. 26APACh. 24 - Prob. 27APACh. 24 - Prob. 28APACh. 24 - Prob. 29APACh. 24 - Prob. 30APA
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