The management of the Keribels Company wishes to apply the Miller-Orrmodel to manage its cash investments. They have determined that the costof either investing in or selling marketable securities is P 100. By looking atthe Keribels Company's past cash needs, they have determined that thevariance of daily cash flow is P 75,000. Keribels Company's opportunitycost of cash per day is 0.05%. Based on their experience the cash balanceshould not fall below P 50,000. WHAT IS THE LOWER LIMIT? (Use a number,no decimal value, no currency, no space, no commas)

In this we have to use Miller Orr model of cash management.

odel to manage its cash investments. They have determi either investing in or selling marketable securities is P 10 e Keribels Company's past cash needs, they have deterr riance of daily cash flow is P 75,000. Keribels Company" st of cash per day is 0.05%. Based on their experience t ould not fall below P 50,000. WHAT IS THE LOWER LIMIT decimal value ommas) *

odel to manage its cash investments. They have determi either investing in or selling marketable securities is P 10 e Keribels Company's past cash needs, they have deterr riance of daily cash flow is P 75,000. Keribels Company" st of cash per day is 0.05%. Based on their experience t ould not fall below P 50,000. WHAT IS THE LOWER LIMIT decimal value ommas) *

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

Problem 1PS

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ve What is the modified internal rate of return for the following cashflow? CFO ($8,250,000) 19.52% O 26.41% 32.11% O 14.03% CF₁ $4,950,000 i = 9% CF₂ H $4,950,000 CF 3 CF4 ($1,850,000) $4,550,000 CF5 H $2,850,000
Choose the correct letter of answer: Company D's current assets and current liabilities are P200,000.00 and P140,000.00 respectively. How much additional funds can it borrow from banks for short term, without reducing the current ratio below 1.33? a. P13,800.00b. P86,200.00c. P52,612.00d. P35,870.00e. P41,818.00
Hadley Inc, forecasts the year-end I free cash flows (in millions) shown below. Year 1 2 FCF $-22.82 $38.8 35 4 $52 $43.5 5 $56.3 The weighted average cost of capital is 12% and the FCFS are expected to contique, growing at a 3% rate after year 5. The firm has $26 million of markat-value debt. but it has no preferred stock or any other outstanding claions. There are 20 million Shares outstanding. Also, the firm has zero non- operating assets. What is the value of the stack price today (Year 0) ? per share.
For the given cash flow, Which of the following statements is correct? Year 1 3 +2,000 -500 -8,100 +6,800 Select one: a. There are two interest rate b. The present worth converts in sign from positive to negative two times C. Non-conventional cash flow d. all the above %24
The company A manages cash by using Baumol model for defining the amount of cash. According to the Baumol model the average model the average balance (C */2) is equal to 500$. That moment the negotiable securities yield was 4%. A steep rise caused an increase in interest rates to 9%. Which is the new average cash balance?
Please help me answer this. Thank you.
b) Use the free cashflow model to calculate the value of the company. (10) Year 0 1 2 3 Free cash flows Terminal value* Net relevant cash flows P/Y CF0 CF1 CF, 2 CF3 NPV FCF per share
Choose the letter of correct answer A firm's current assets and current liabilities are P25,000.00 and P18,000.00 respectively. How much additional funds can it borrow from banks for short term, without reducing the current ratio below 1.35 times *a. P1,000.00b. P2,000.00c. P3,000.00d. P4,000.00e. P5,000.0
A 156.please do by hand and not use excel
Kale Inc. forecasts the free cash flows (in millions) shown below. Assume the firm has zero non-operating assets. If the weighted average cost of capital is 11.0% and FCF is expected to grow at a rate of 4.0% after Year 2, then what is the firm’s total corporate value (in millions)? Do not round intermediate calculations. Year0 FCF -$40 Year 1 FCF $150
Given: Cash transactions as shown in cash flow diagram. %24 g = 4%/yr (positive transactions decreases from year to year) i = 10% per year 1 3 4. 5 7 12 13 14 15 Yrs g = 5%/yr (negative transactions become more negative) Required: (i) The net equivalent value at year 0 (Po)
| Suppose that FirstBank has the following simplified balance sheet. Assume that all other components of the balance sheet are equal to zero. Assets Liabilities reserves 3,920 demand deposits 32,000 loans 28,080 32,000 32,000 Assume that the reserve ratio is r= .10 (10%). a. Does FirstBank have excess reserves? If so, of how much? b. Suppose that FirstBank desires to hold no excess reserves, so it loans out its excess reserves to borrowers. How does the balance sheet change? Either use T-accounts or a new balance sheet to show. c. Starting back in a), what is the maximum deposit outflow that FirstBank can sustain without affecting other parts of the balance sheet?

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