Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Your firm needs $135,000 a week to pay bills. The standard deviation of the weekly disbursements is $12,000. The firm has established a lower cash
Your firm needs $135,000 a week to pay bills. The standard deviation of the weekly disbursements is $12,000. The firm has established a lower cash balance limit of $60,000. The applicable interest rate is 5% and the fixed cost of transferring funds is $45. What is the opportunity cost of holding cash? Multiple Choice $3,372 O O $5,620 O $2,810 O $3,091 o $4,215
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started