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Author Question: What is the most common measure of a firm's capital stock, and why is it not the most important to ... (Read 39 times)

mikaylakyoung

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on: Jun 29, 2018
What is the most common measure of a firm's capital stock, and why is it not the most important to focus on?
 
  What will be an ideal response?

Question 2

A decrease in interest rates can ________ the demand for stocks as stocks become relatively ________ attractive investments as compared to bonds.
 
  A) decrease; less
  B) increase; more
  C) decrease; more
  D) increase; similar
  E) increase; less


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meryzewe

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The most common measure of a firm's capital stock is the current market value of its plant, equipment, inventories, and intangible assets. However, in thinking about capital, it is important to focus on the actual capital stock instead of its simple monetary value.

Answer to Question 2

B


mikaylakyoung

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

tanna.moeller

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Reply 3 on: Yesterday
Excellent

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