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The Saban Corporation is trying to decide whether to switch to a bank that will accommodate electronic funds transfers from Saban's customers. Saban's financial manager
The Saban Corporation is trying to decide whether to switch to a bank that will accommodate electronic funds transfers from Saban's customers. Saban's financial manager believes the new system would decrease its collection float by as much as 6 days. The new bank would require a compensating balance of $35,000, whereas its present bank has no compensating balance requirement. Saban's average daily collections are S9.700, and i can earn 7 9% on its s or en investments. Should Saban make esw sume e pensat ng balance at the new bank will be deposited in a non-interest-earning account.) As a result of using the electronic funds transfer system, the amount of collection float freed up is SRound to the nearest dollar.) The amount that is immediately available to Saban Corporationis S(Round to the nearest dollar.) Saban should banks. (Select from the drop-down menu.) switch not switch
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