By dividing the southern region collections will be

Assignment Help Finance Basics
Reference no: EM13574358

Dividing of Region. Boston Corporation has an arrangement with XYZ Bank in which the bank handles $5 million a day in collections but requires a $420,000 compensating balance. The company is considering withdrawing from the arrangement and dividing its southern region so that two other banks will handle the business instead. Bank S will handle $3 million a day of collections and require a $450,000 compensating balance, and bank T will handle the other $2 million a day and require a compensating balance of $350,000. By dividing the southern region, collections will be accelerated by ½ day. The rate of return is 17 percent. Should the southern region be divided?

Reference no: EM13574358

Questions Cloud

Suppose you are given data from a survey showing the iq of : suppose you are given data from a survey showing the iq of each person interviewed and the iq of his or her mother.
Net working capital winston corporation has the following : net working capital. winston corporation has the following selected assets and liabilitiescash15000accounts
Far side corporation is expected to pay the following : far side corporation is expected to pay the following dividends over the next four years 11 8 5 and 2. afterward the
A piece of equipment with a cost of 11000 a useful life of : a piece of equipment with a cost of 11000 a useful life of 5 years and a salvage value of 1000 is depreciated using
By dividing the southern region collections will be : dividing of region. boston corporation has an arrangement with xyz bank in which the bank handles 5 million a day in
Daguio corporation uses direct labor-hours in its : daguio corporation uses direct labor-hours in its predetermined overhead rate. at the beginning of the year the total
Sales for petro equipment are expected to be 5800 units for : sales for petro equipment are expected to be 5800 units for the coming month. the company keeps a 25 of unit sales for
Marcel co is growing quickly dividends are expected to grow : marcel co. is growing quickly. dividends are expected to grow at a 30 percent rate for the next three years with a
Km ries tere bax and josh thomas invested 30000 46000 and : kim ries tere bax and josh thomas invested 30000 46000 and 54000 respectively in a partnership. during its first

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe questions on capital budgeting decisions

Describe questions on capital budgeting decisions and explain If salvage value is ignored in depreciating an asset for tax purposes, any sales proceeds received at the end of the life of the asset are fully taxable as income.

  Determine the benefits

Identify one each one benefit, two disbenefit, and three monetary cost that would impact each of the following projects:

  If the center requires to make a profit of 75000 per month

the north kingstown cancer infusion expects tremendous growth over the next year and is projecting the following cost

  Find the percentage earned on the investment

If an investor buys shares in a closed-end investment corporation for $46 and the net asset value is $53, determine the discount? If the company distributes $1, net asset value increase to $58.

  How many dollars of revenue must the company generate

Circle K Furniture has a contribution margin ratio of 16%. If fixed costs are $176,800, how many dollars of revenue must the company generate in order to reach the break-even point? a) $1060,800 b) $1,105,000 c) $282,880 d)$208,476

  1 explain what would be the cost of retained earnings

1 explain what would be the cost of retained earnings equity for tangshan mining if the expected return on u.s.

  Income statement information for washburn corporation is

income statement information for washburn corporation is provided below.sales400000cost of goods sold340000gross profit

  How large must the deposit be

Your rich uncle offers to put you through school, and he will deposit in a bank paying 5.65% interest a sum of money that is sufficient to provide the 4 payments of $30,000 each. His deposit will be made today.

  What is your ldquonumberrdquo what might cause your number

what is your ldquonumberrdquo see reading for techniques and tools? what might cause your number to be higher? what

  Calculation of monthly payments

Calculation of Monthly Payments and Outstanding Loan Balance and Principal paid under Amortizing-Mortgage Contract

  Would increase in volatility long-term interest rate cause

Would an increase in the volatility of long-term interest rates cause a bond investor to pay more or less for a non-callable bond that had high convexity? Briefly explain your answer.

  Is the best method of analyzing mutually exclusive projects

is the best method of analyzing mutually exclusive projects.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd