The Eliot Co. needs $210,000 a week to pay bills. The standard deviation of the weekly disbursements is $24,000. The firm has established a lower cash balance limit of $90,000. The
Applicable interest rate is 4 percent and the fixed cost of transferring funds is $60. Based on the
BAT model, what is the opportunity cost of holding cash?
A) $2,560
B) $3,620
C) $5,119
D) $7,240
E) $8,400
Correct Answer:
Verified
Q160: Donaldson, Inc. spends $79,000 a week to
Q161: BullsNBears, a purveyor of financial databases, estimates
Q162: Picard Industries requires $250,000 a week to
Q163: Your firm spends $82,000 a week to
Q164: The Lawrence Stone-Age Pottery Co. receives 50
Q166: Your firm needs $68,000 a week to
Q167: BullsNBears, a purveyor of financial databases, estimates
Q168: Your firm spends $110,000 a week to
Q169: Picard Industries requires $250,000 a week to
Q170: Your firm spends $110,000 a week to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents