Expenditures
8000
6000
4000
2000
2000
4000 6000 8000
Disposible Income
Figure 1
1. In Figure 1, how much is investment when disposable
income is 2000?
2. In Figure 1, how much is investment when disposable
income is 4000?
3. If a corporation has $10 billion in preferred stock, $20
billion in common stock, and $40 billion in bonds,
a) How much is its capitalization?
b) Theoretically, how much would it take to control it?
c) Practically, how much would it take to control it?
4. If a corporation has $400 million in common stock, $200
million in preferred stock, and $500 million in bonds,
a) How much is its capitalization?
b) Theoretically, how much would it take to control it?
c) Practically, how much would it take to control it?