Rosie O'Grady's spends $115,000 a week to pay bills and maintains a lower cash balance limit of $95,000.The standard deviation of the disbursements is $14,600.The applicable interest rate is 4.8 percent and the fixed cost of transferring funds is $50.What is this firm's total cost of holding cash based on the BAT model?
A) $1,431
B) $2,862
C) $3,034
D) $4,912
E) $5,358
Correct Answer:
Verified
Q75: Roger's Distributors receives an average of 310
Q76: You are considering implementing a lockbox system
Q77: It takes your firm 4.5 days to
Q78: Parkway Express needs $318,000 a week to
Q79: Your average customer is located 4.3 mailing
Q81: Mountaintop Inns,a Kentucky company,has determined that a
Q82: Purple Feet Wine,Inc.receives an average of $6,000
Q83: Your neighbor goes to the post office
Q84: Donaldson,Inc.spends $94,000 a week to pay bills
Q85: Each business day,on average,a company writes checks
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