What is the optimum number of times per quarter

Assignment Help Financial Management

Reference no: EM131864483

As the financial manager of Domino Corp., you want to determine how frequently the company should sell the Treasury bills it owns to cover its day-to-day cash flow needs averaging €15 million a quarter. The annual rate of return on the Treasury bills is 0.4% and it costs €300 each time the company sells bills. Assume that the funds received from selling the bills do not earn any interest.

a) What is the optimum number of times per quarter that Domino should sell the bills?

b) Suppose that Domino could invest its temporary excess cash balances at 0.2%.

What is the optimum number of times per quarter that Domino should sell the bills?

Reference no: EM131864483

Questions Cloud

Determines the greatest common divisor of two numbers : Write and test a iterative function that determines the greatest common divisor (GCD) of two numbers.

Create different bloodstain patterns : Create different bloodstain patterns and analyze the patterns using these instructions and the following materials:

Implement the incident command system : Major portions of the city have been affected by sudden severe weather with hail and heavy rains. These have caused the North River to flood parts

What is the companys financial health : What is the company's financial health (new products, expansion efforts, company risks, whether revenues are growing or stable, etc.)?

What is the optimum number of times per quarter : What is the optimum number of times per quarter that Domino should sell the bills?

Describe the layout of a typical fast-food franchise : Describe the layout of a typical fast-food franchise such as McDonald's. What type of layout is it? How does it support productivity?

How many moles of NaOH would be required to titrate : How many moles of NaOH would be required to titrate one mole of the fully protonated peptide to its fully unprotonated form

Considering adding hiking backpacks to their product line : Outdoors Plus manufactures sleeping bags, but are considering adding hiking backpacks to their product line.

Describe the six basic accounting concepts : Describe the six basic accounting concepts that all healthcare managers should understand.

User Account

All Pages