What is the firms collection float

Assignment Help Financial Management

Reference no: EM131022207

On an average day, a company writes checks totaling $1,500. These checks take 7 days to clear. The company receives checks totaling $1,800. These checks take 4 days to clear. The cost of debt is 9%. What is the firm's collection float? A. $-7,200 B. $-1,800 C. $1,800 D. $10,500 E. None of these.

Reference no: EM131022207

Questions Cloud

An equilibrium mixture of the above system : An equilibrium mixture of the above system was found to contain the following concentrations: HCl(g) = 0.35 mol/L, O2(g) = 0.078 mol/L and H2O(g) =1.2 mol/L. The equilibrium concentration of Cl2(g) is calculated to be _______ mol/L

What is the effective annual rate on your mortgage : Your mortgage statement says that your loan is at 5.27 percent APR, with monthly payments. What is the effective annual rate on your mortgage (i.e., taking into account the monthly compounding)? Enter answer in percents, accurate to two decimal place..

What was happening to real wages in argentina : General Juan Perón, the former dictator of Argentina, once said of the labor market in his country: "Prices have gone up the elevator, and wages have had to use the stairs." In this situation, what was happening to real wages in Argentina? Was un..

How try to reduce unemployment at time of rising inflation : "To try to use monetary policy to reduce unemployment when inflation is already above target is playing with fire and could lead us down the road that we followed in the 1970s." What does the author mean by "the road that we followed in the 1970s..

What is the firms collection float : On an average day, a company writes checks totaling $1,500. These checks take 7 days to clear. The company receives checks totaling $1,800. These checks take 4 days to clear. The cost of debt is 9%. What is the firm's collection float? A. $-7,200 B. ..

The total amount of administration expense : The total amount of administration expense that should be allocated to the Assembly Department for the current period is:

Why might such views of the trade-off inflation : In macroeconomics courses in the 1960s and early 1970s, some economists argued that one of the U.S. political parties was willing to have higher unemployment in order to achieve lower inflation and that the other major political party was willing ..

Briefly explain what a government deficit is : Briefly explain what a government deficit is and then outline the methods the government has available to it for financing government spending programs. What effect on the monetary base do these government deficit financing options have on the mo..

What is the annual tax shield to a firm : What is the annual tax shield to a firm that has a capital structure consisting of 100 million of debt and $180 million of equity, if the average interest rate on debt is 9%, the return on equity is 13%, and the marginal tax rate is 40%?

User Account

All Pages