Assume that a national restaurant firm called bbq builds 15 new
Assume that a national restaurant firm called BBQ builds 15 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $400,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 300,000 shares of stock at $40 per share.
What is the amount of economic investment that has resulted from BBQ’s actions?
How much purely financial investment took place?