Lemon’s evaluation of its cash outlay required indicates that it needs 200,000 for the year. Regardless, of the amount. It incurs 50 to convert Marketable Securities earn an annual rate of 5%. Lemon does not maintain buffer cash. A. How many transactions should be there in a year? B. How much is the Total Annual Cost of Cash?
Lemon’s evaluation of its cash outlay required indicates that it needs 200,000 for the year. Regardless, of the amount. It incurs 50 to convert Marketable Securities earn an annual rate of 5%. Lemon does not maintain buffer cash. A. How many transactions should be there in a year? B. How much is the Total Annual Cost of Cash?
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 2P
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Lemon’s evaluation of its cash outlay required indicates that it needs 200,000 for the year. Regardless, of the amount. It incurs 50 to convert Marketable Securities earn an annual rate of 5%. Lemon does not maintain buffer cash.
A. How many transactions should be there in a year?
B. How much is the Total Annual Cost of Cash?
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