Question
Use the following monthly information to answer Questions 6 - 8. Remittance Mail Float Processing Float Availability Float $100,000 5 1 2 $300,000 3 2
Use the following monthly information to answer Questions 6 - 8.
| Remittance | Mail Float | Processing Float | Availability Float |
| $100,000 | 5 | 1 | 2 |
| $300,000 | 3 | 2 | 1 |
| $500,000 | 1 | 0.5 | 0 |
Assume a 30-day month.
6. What is the total dollar-day float for the month?
| a. | $4,710,000 | |
| b. | $3,350,000 | |
| c. | $6,439,000 | |
| d. | $8,525,000 |
7.
Assume a 30-day month.
What is the average daily collection float?
| a. | $157,000 | |
| b. | $284,167 | |
| c. | $111,667 | |
| d. | $96,285 |
8.
Assume a 30-day month.
If the annual opportunity cost of funds is 5%, what is the annual cost of float?
| a. | $9,420 | |
| b. | $7,850 | |
| c. | $5,583 | |
| d. | $14,208 |
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Portfolio Performance Measurement And Benchmarking
Authors: Jon Christopherson, David Carino, Wayne Ferson
1st Edition
0071496653, 978-0071496650
