What opportunity cost of holding cash was analysis based

Assignment Help Financial Management
Reference no: EM131593527

Maya Inc.'s optimal cash transfer amount, using the Baumol model, is $50,000. The firm's fixed cost per cash transfer of marketable securities to cash is $180, and the total cash needed for transactions annually is $960,000. On what opportunity cost of holding cash was this analysis based?

Reference no: EM131593527

Questions Cloud

Calculate the return on start-of-the-year capital : Calculate the economic value added. Calculate the return on start-of-the-year capital. Calculate the market-to-book ratio.
Define the pledge of allegiance because it mentions god : Reciting the Pledge of Allegiance because it mentions God. Should schools ever expose students to moral and religious ideas
Define pension data of doreen corp : Instructions: For 2014, prepare a pension worksheet for Doreen Corp. that shows the journal entry for pension expense and the year-end balances.
If the fed wishes to lower interest rates : If the Fed wishes to lower interest rates, it should raise the discount rate. Why is this true?
What opportunity cost of holding cash was analysis based : On what opportunity cost of holding cash was this analysis based?
Discuss how the american justice system addresses : Discuss how this contributes to the globalization of crime and how the American justice system addresses international criminal activity
Compute pension expense for buhl corp for the given year : Buhl Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2014, the following balances relate to this plan.
How did the american court system develop : How did the American court system develop. What is the dual-court system. Why do we have a dual-court system in America
Purchase to maximize? utility : If the prices of toffee bars and bags of cashews are both ?$2 and this consumer has ?$22 per week to spend on these two? snacks

Reviews

Write a Review

Financial Management Questions & Answers

  Fraction of your money will be invested in risk-free bonds

You own some shares of Microsoft worth $1,000. Beta of Microsoft is 2. Microsoft currently has no debt. Microsoft decides to issue debt and buy back some of its stock in open market. Effectively, you want to undo the leverage of Microsoft. What fract..

  What is firm balance of current assets

What is the firm's balance of current assets?

  Calculate the internal rate of return for each project

Calculate the internal rate of return (IRR) for each project. Calculate the net present value (NPV) for each project.

  Use equity to finance remainder of the initial investment

use equity to finance the remainder of the initial investment.

  How much does the investor gain

How much does the investor gain or lose if the exchange rate at the end of the contract is 1.4200 USD/GBP?

  Test level of significance whether they are meeting goal

Test at the 10% level of significance whether they are meeting their goal. Select the correct answer out of each pair of choices.

  What is the total asset turnover

Given the following information about Weber's Online Grocery assuming it wells entirely on credit, what is the total asset turnover?

  Security a has a beta of 10 and an expected return of 12

security a has a beta of 1.0 and an expected return of 12. security b has a beta of 0.75 and an expected return of 11.

  What is the irr of this investment opportunity

Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are $4.99 million. The product is expected to generate profits of $1.14 million per year for ten years. What does the IRR rule indi..

  How many shares has the company issued

How many shares has the company issued?-  What is the book value per share?- At what price did it sell shares to the market?

  What is net present value of this project

A company is considering a 6-year project that requires an initial outlay of $29,000. what is the net present value (NPV) of this project?

  The required rate of return on the market

The risk-free rate of return is 4%, the required rate of return on the market is 10%, and High-Flyer stock has a beta coefficient of 2.0. If the dividend per share expected during the coming year, D1, is $4.60 and g = 6%, at what price should a share..

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