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Nielson Motors has no debt, and maintains a policy of holding $92 million in excess cash reserves, invested in risk-free treasury securities currently yielding 5%. If Nielson has a 20% corporate tax rate, the cost of permanently maintaining this $70 million reserve is closest to: Group of answer choices $15.0 million. $16.3 million. $18.4 million. $19.5 million

Nielson Motors has no debt, and maintains a policy of holding $92 million in excess cash reserves, invested in risk-free treasury securities currently yielding 5%. If Nielson has a 20% corporate tax rate, the cost of permanently maintaining this $70 million reserve is closest to: Group of answer choices $15.0 million. $16.3 million. $18.4 million. $19.5 million

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Nielson Motors has no debt, and maintains a policy of holding $92 million in excess cash reserves, invested in risk-free treasury securities currently yielding 5%. If Nielson has a 20% corporate tax rate, the cost of permanently maintaining this $70 million reserve is closest to: Group of answer choices $15.0 million. $16.3 million. $18.4 million. $19.5 million.
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