Question
Based on the figure above fill in the following blanks. In period 1 the firm will pay a dividend of ( )million dollars to the
Based on the figure above fill in the following blanks. In period 1 the firm will pay a dividend of ( )million dollars to the investor. The investor will then invest/borrow ( ) million dollars of their period 0 dividend, which will generate a cash flow/require a cash repayment on this investment of ( ) million dollars. All of this means that the total period one cash available for the investor to spend is ( ) million dollars.
Your answer must be in millions of dollars, contain two decimal places, and the minus sign for borrowing and repayment. For example, if your answer is 9 million dollars, you will write 9.00. If you want to borrow 900,000, write -0.90. Follow standard protocols for rounding. If you fail to follow these instructions precisely the computer will mark you incorrectly. For example, if the answer is -0.90, but you write -.90 or -0.9 you will be marked incorrectly by the computer. Please triple check your formatting.
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