Answer:
The maximum that Marco is willing to pay to buy ABC Co. today is $23967.0645
Explanation:
The maximum amount that Marco will be willing to pay today will be the present value of the expected cash flows discounted at the required rate of return. Using the discounted cash flows approach also known as DCF approach, we can calculate the present value of the cash flows,
Present Value = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n
Where,
- CF is the cash flow
- r is the required rate of return
Present value = 5000 / (1+0.12) + 10000 / (1+0.12)^2 + 16200 / (1+0.12)^3
Present value = $23967.0645
The maximum that Marco is willing to pay to buy ABC Co. today is $23967.0645
Sorry you need a little more detail for your question.
Answer: The answer would be C. Collective bargaining
Answer:
A) To cut the interest rate from 2% to 1.5%, the Federal Reserve needs to increase the money supply. The Open Market Committee will have to sell US Treasury security bonds in order to increase the money supply. This in turn will increase commercial bank's reserves, who in turn, will lower their interest rates in other to get rid of excess reserves.
B) Banks will lend more money because they now have excess reserves. It will increase the nation's money supply because banks create money when they make loans.
C) This will typically increase aggregate demand because a lower interest rate and cheaper loans result in a higher demand for financial securities. Firms will take more loans, they will use this loans for investments, and this investments will in turn increase production. Increased production means a higher supply of goods and services at a better price, and consumers will take advantage of it.
Explanation:
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