You are working as a treasurer for a Toronto-based long-term healthcare company. Your company has $10,000,000 of excess cash and you notice that, on June 29, 2023 the Canadian overnight REPO rate average (CORRA) is 4.75%. If you consider depositing your company's excess cash ($10,000,000) for 14 consecutive days in this overnight rate, calculate the after-tax interest income assuming that the tax rate on interest income is 40%. Also, assume that there is no transaction cost
You are working as a treasurer for a Toronto-based long-term healthcare company. Your company has $10,000,000 of excess cash and you notice that, on June 29, 2023 the Canadian overnight REPO rate average (CORRA) is 4.75%. If you consider depositing your company's excess cash ($10,000,000) for 14 consecutive days in this overnight rate, calculate the after-tax interest income assuming that the tax rate on interest income is 40%. Also, assume that there is no transaction cost
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You are working as a treasurer for a Toronto-based long-term healthcare company. Your company has $10,000,000 of excess cash and you notice that, on June 29, 2023 the Canadian overnight REPO rate average (CORRA) is 4.75%. If you consider depositing your company's excess cash ($10,000,000) for 14 consecutive days in this overnight rate, calculate the after-tax interest income assuming that the tax rate on interest income is 40%. Also, assume that there is no transaction cost
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