Answer:
$25.15
Explanation:
The price the stock would be sold at the end of the three-year holding period can be computed using excel FV formula stated below:
=fv(rate,nper,pmt,-pv)
rate is the semiannual cost of capital i.e 14%/2=7%
nper is the number of dividend payments over three-year period which is 6
pmt is the amount of semiannual dividend payment
pv is the current stock price
=fv(7%,6,1.1,-22)=$25.15
Answer: Lindsay took out a Loan to purchase her new home. Lindsay also paid money in advance this is known as a down payment. If Lindsay dose not make her loan payment on time the bank will most likely foreclose.
Answer: Please refer to Explanation
Explanation:
M1 is the narrowest definition of money supply. It refers to the most liquid or instruments and includes actual currency as well as money in checking accounts.
M2 is the next type of of money. It includes EVERYTHING in M1 and then also includes savings deposits, time deposits, and money market funds.
Now,
Classifying the above will go as,
Gold - Neither M1 or M2
Traveler's check - M1 and M2
Balance in savings accounts - M2 only
Money market account balance - M2 only
Credit cards - Neither M1 or M2
Common stock - Neither M1 or M2
Certificates of deposit - M2 only
Currency - M1 and M2
Balance in Checking accounts - M1 and M2
It is worthy of note that there is no M1 only. This is because as stated in the definition, all M1s are in M2.