Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $14 each and are ordered in
1 answer:
You might be interested in
Answer:
Explanation:
Given data:
Amount of currency held = $1347 billion
checkable deposit $1347 billion
saving deposit $8189 billion
small time deposit $400 billion
market fund $709 billion
Saving deposit in the form M2 and M1
M_1 = currency held as individual and traveller check + checkable deposit
= $1347 + $1764
M_2 = M_1 + saving deposit _ time deposit + maket funds
= $3111 + $8189 + $400 + $709
Answer:
The present value of the dividends to be paid out over the next six years if the required rate of return is 15 percent is $6.57
Explanation:
Solution:
Given that
The present value =∑ ⁿ t=1 cf/ (1 +r)t
where cf= cash flow
r =the required rate of return
t = the number of years
Now
The present value will be:
cf₁/(1+r)^1 + cf₂/(1 +)^2 + cf₃/(1+r)3 + cf₄/(1 +r)^4) + cf₅/(1 +r)^5 + cf₆/(1+r)^6
Hence,
cf₁, cf₂ cf₃ = 0 as the firm does not expect to pay dividend in the next three years
Note: Kindly find an attached document of the part of the solution to this given question
