The Costs of Investment Depend on the ________ and the ________

question 4

Multiple Choice

The costs of investment depend on the ________ and the ________.

• A)marginal product of capital; relative price of the firm's output
• B)price of new capital goods; real interest rate
• C)relative price of the firm's output; real interest rate
• D)taxes levied on the revenue generated; relative price of the firm's output

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Definitions:

Stated Value

A value assigned to a company's shares that does not have a par value; often used in accounting for preferred stock.

Common Stock Account

An equity account that represents the ownership interest of the shareholders in a company.

Common Stock Dividend Distributable

The amount of dividends declared by a company but not yet paid to common stockholders.

Equity Account

An account representing the owner's interest or stake in a company.