Toni's has a net cash inflow for the quarter of $387.50.The beginning cash balance is $211.21.The firm has $522 in short-term debt with a quarterly interest rate of 1.8 percent.Company policy is to maintain a minimum cash balance of $200.How much does the firm need to borrow or how much can it repay on its loan to have a zero cumulative surplus for the quarter?
A) Borrow $187.31
B) Borrow $176.69
C) Repay $276.31
D) Repay $389.31
E) Repay $187.69
Correct Answer:
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