Question
A firm has a daily float of $2,000 with a float time of 4 days. A bank offers to reduce the float time to 0
A firm has a daily float of $2,000 with a float time of 4 days. A bank offers to reduce the float time to 0 day. The bank fee for this service is $455 per year. The companys hurdle return per year is 7%. How much is the perpetual bank fee $______?
| 6000 | ||
| 6500 | ||
| 7000 | ||
| 7500 |
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International financial management
Authors: Jeff Madura
13th edition
978-1337099738, 1337099732, 9781337515894, 1337515892, 978-1337587211
