User Account

All Pages

Calculate the spread between the upper and lower limits

Assignment Help Accounting Basics
Reference no: EM133104785

Question - i. The minimum cash balance of Kshs 20,000 is required at ABC Co, and transferring money to or from the bank costs Kshs 50 per transaction. Inspection of daily cash flows over the past year suggests that the standard deviation is Kshs 3,000 per day, and hence the variance (standard deviation squared) is Kshs 9 million. The interest rate is 0.03% per day.

(a) Calculate the spread between the upper and lower limits?

(b) Calculate the upper limit?

(c) Calculate the return point (target cash balance)?

ii. Under what conditions would it be possible for a company to hold no cash or marketable securities? Are these conditions realistic?

Reference no: EM133104785

Questions Cloud

How much is the share of alexander : The partnership earned profit amounting to P40,000. How much is the share of Alexander if no profit or loss sharing agreement was made during the year
How much does he still owe the bank : Jake has taken a 25-year, $2 million housing loan at an interest rate of 12% per year. How much does he still owe the bank
Prepare entries required to record the inception : Prepare entries required to record the inception of the lease in the capital projects fund, the debt service fund, and the governmental activities journal
Reflect on your current level of emotional intelligence : Emotional Intelligence: Self Reflective Analysis - Demonstrate the technique of reflective and reflexive practice as a means of continuous learning
Calculate the spread between the upper and lower limits : The minimum cash balance of Kshs 20,000 is required at ABC Co, Calculate the spread between the upper and lower limits
What were the sales in canada : Tim Hortons says a weak roll-up-the rim campaign contributed to sales falling 0.6% worldwide and 0.4% in Canada in 2018. What were the sales in Canada
Compute amazon balance in cash at the beginning of the year : The following information ($ in millions) comes from a recent annual report of Amazon Inc: Net sales $10,840. Compute Amazon balance in cash at the beginning
Evaluate the role of emails in business communication : Evaluate the role of emails in business communication - Describe in both scenarios where email is not the best channel for communication
What are the equivalent units for materials : Beginning Work-in-Process is 4,050 units; 72,500 units completed, and ending Work-in-Process is 7,950 units, What are the equivalent units for materials

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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