Setting of optimal cash balance, Finance Basics

Assignment Help:

Setting of Optimal Cash Balance

Cash is often identified like a non-earning asset since holding cash quite than a revenue-generating asset includes a cost in form of foregone interest.  Therefore the firm must hold the cash balance which will enable it to meet its scheduled payments like they fall due and give a margin for safety.  So there are several techniques used to find out the optimal cash balance.  These are like:

The Cash Budget

The Cash Budget confirms the firm's projected cash outflows and inflows over some particular period. This technique has already been discussed in another earlier course.  However the student must revise the cash budget.


Related Discussions:- Setting of optimal cash balance

Time value of money, Compute the future value of $2,500 compounded annually...

Compute the future value of $2,500 compounded annually for 10 years at 6%

Financial performance analysis, given profit margin 7%, total asset turnove...

given profit margin 7%, total asset turnover is 1.94, Return on equity is 23.7%, what is the debt equity ratio

Timing of investment a stock exchange, Timing of Investment a Stock Exchang...

Timing of Investment a Stock Exchange The ideal way of creation profits on the stock exchange is to buy on the bottom of the market or lowest M.P.S and sell at the top of the

Bureaucratic system of management, "Managerial leadership considers that th...

"Managerial leadership considers that the focus of school leaders ought to be on functions, tasks and behaviours and if these functions are carried out competently the work of othe

Money market mutual funds (), why i cant found date for mmmfs like total as...

why i cant found date for mmmfs like total asset or number of share or return ???? i search alot and i found words instead of number

Market model - methods of computing cost of capital, Market Model - Methods...

Market Model - Methods of Computing Cost of Capital This model is utilized to establish the percentage cost of ordinary share capital cost of equity (K e ). If an investor is

Price earnings ratio valuation, Price Earnings Ratio Valuation P/E rat...

Price Earnings Ratio Valuation P/E ratio is traditionally employed for valuation of shares however it is an important ratio in the valuation of business. The P/E ratio is the

#title.ASF, Ask questioAustralian’s Speleological App Projectn #Minimum 100...

Ask questioAustralian’s Speleological App Projectn #Minimum 100 words accepted#

Determine the classification of new issue market, Classification of New Iss...

Classification of New Issue Market New market can be classified as: (i) A market where firms go to public for the first time through initial public offering (IPO). (ii

Joint stock companies - types of business organisations, Joint Stock Compan...

Joint Stock Companies - Types of Business Organisations Initiators contribute to the capital support of those companies via the purchase of shares of those companies. These co

Write Your Message!

Captcha
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