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Ekrita’s evaluation of its cash outlay required indicates that it needs 200,000 for the year. Regardless, of the amount. It incurs 50 to convert Marketable Securities to Cash. The Marketable Securities earn an annual rate of 5%. Lemon does not maintain buffer cash.
- How much is the Optimal Transaction Size?
- How much is the Annual Holding Cost as a result of keeping Cash in Bank?
- How much is the Total Annual Cost of Cash?
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- Lemon’s evaluation of its cash outlay required indicates that it needs 200,000 for the year. Regardless, of the amount. It incurs 50 to convert Marketable Securities to Cash. The Marketable Securities earn an annual rate of 5%. Lemon does not maintain buffer cash. A. How much is the Optimal Transaction Size? B. How much is the Average Cash Balance? C. How much is the Annual Holding Cost as a result of keeping Cash in Bank?National Co.’s evaluation of its cash outlay required indicates that it needs 500,000 for the year. Regardless of the amount. It incurs 30 to convert marketable securities to cash. The marketable securities earn an annual rate of 3%. Potter does not maintain buffer cash 1. How much is the optimal transaction size? 2. How much is the average cash balance? 3. How mich is the annual holding cost as a result of keeping cash on hand? 4.How many transactions should be there in a year? 5.How much is the total annual cost of cash?National Co.’s evaluation of its cash outlay required indicates that it needs 500,000 for the year. Regardless of the amount. It incurs 30 to convert marketable securities to cash. The marketable securities earn an annual rate of 3%. Potter does not maintain buffer cash How much is the optimal transaction size?How much is the average cash balance?How much is the annual holding cost as a result of keeping cash on hand?How many transactions should be there in a year?
- National Co.’s evaluation of its cash outlay required indicates that it needs 500,000 for the year. Regardless of the amount. It incurs 30 to convert marketable securities to cash. The marketable securities earn an annual rate of 3%. Potter does not maintain buffer cash. 1. How much is the optimal transaction size? 2. How much is the average cash balance? 3. How much is the annual holding cost as a result of keeping cash in ban? 4. How many transactions should be there in a year? 5. How much is the total annual cost of cash?V company's evaluation of its cash outlay required indicates that it needs P50,000 for the year. The marketable securities earn an annual rate of 2%. The company incurs P5 to convert marketable securities to cash. V company maintains buffer cash of 5,000 all throughout the year. 1. How much is the annual holding cost as a result of keeping cash in bank? 2. How much is the total annual cost of cash?Lemon’s evaluation of its cash outlay required indicates that it needs 200,000 for the year. Regardless, of the amount. It incurs 50 to convert Marketable Securities earn an annual rate of 5%. Lemon does not maintain buffer cash. A. How many transactions should be there in a year? B. How much is the Total Annual Cost of Cash?
- XYZ Corporation has a lower and an upper limit for its savings account at P40,000 and P70,000 respectively. Its optimal return point is P50,000. If as of the end of the day, XYZ has a cash balance of P18,000. How much should it request for additional funds or (invest in marketable securities)? Because its cash balance is less than the lower cash limit, XYZ should request for additional funds in the amount of:National Co.’s evaluation of its cash outlay required indicates that it needs 500,000 for the year. Regardless of the amount. It incurs 30 to convert marketable securities to cash. The marketable securities earn an annual rate of 3%. Potter does not maintain buffer cashHow many transactions should be there in a year? How much is the total annual cost of cash?Bulldogs Inc. maintains a cash buffer for unexpected cash outlays for the year amounting to 3,000. Bank of Wildcats charges Bulldogs P15 for every transaction with the bank. The bank grants 5% annual interest. Bulldogs is contemplation if it will still need to have the cash buffer. How much is the annual savings in annual holding cost of cash for Bulldogs if it will not have a cash buffer? It is assumed that the Cost of equity and rate of return are both constant under Walter’s Model of Dividend Relevance, if the cost of equity is higher than the rate of return, it is optimal that The firm is indifferent as to distribute dividends or to reinvest the income None of the choices is correct. No dividend to be given to shareholders All the earnings for the period shall be distributed to shareholders
- Paradise Retailers, Inc. (PRI) determined that $1,500,000 is needed for cash transactions made during the next year. Each time PRI deposits money in its checking account, a charge of $12.95 is assessed to cover clerical costs. If PRI can hold marketable securities that yield 4.5%, and then convert these securities to cash at a cost of only the $12.95 deposit charge, what is the optimal cash amount C* to transfer from marketable securities to the checking account according to the Baumol Model?National Co.’s evaluation of its cash outlay required indicates that it needs 500,000 for the year. Regardless of the amount. It incurs 30 to convert marketable securities to cash. The marketable securities earn an annual rate of 3%. Potter does not maintain buffer cash 1.How many transactions should be there in a year? 2.How much is the total annual cost of cash?Simile Inc. has a total annual cash requirement of P9,075,000 which are to be paid uniformly. Simile has the opportunity to invest the money at 24% per annum. The company spends, on the average, P40 for every cash conversion to marketable securities. What is the Total Opportunity Cost of keeping cash in the bank?