You are the Chief Financial Officer (CFO) for a Toronto-based Biotech company. Your company has $100,000,000 of excess cash and on Oct 27, 2021, you notice that the Bank of Canada overnight money market financing rate is 0.19% (this is an annualized overnight rate). If you consider depositing your company's excess cash ($100,000,000) for 30 consecutive days in the money market financiang rate, calculate the after-tax interest income assuming that the tax rate on interest income is 40%. Also, assume that there is no transaction costs. (Do not use the $ sign. If your answer is $123,456.78, enter 123456.78) Numeric Response
You are the Chief Financial Officer (CFO) for a Toronto-based Biotech company. Your company has $100,000,000 of excess cash and on Oct 27, 2021, you notice that the Bank of Canada overnight money market financing rate is 0.19% (this is an annualized overnight rate). If you consider depositing your company's excess cash ($100,000,000) for 30 consecutive days in the money market financiang rate, calculate the after-tax interest income assuming that the tax rate on interest income is 40%. Also, assume that there is no transaction costs. (Do not use the $ sign. If your answer is $123,456.78, enter 123456.78) Numeric Response
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 7E
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Transcribed Image Text:You are the Chief Financial Officer (CFO) for a Toronto-based Biotech company. Your company has $100,000,000 of excess cash and on
Oct 27, 2021, you notice that the Bank of Canada overnight money market financing rate is 0.19% (this is an annualized overnight rate). If you consider
depositing your company's excess cash ($100,000,000) for 30 consecutive days in the money market financiang rate, calculate the after-tax interest
income assuming that the tax rate on interest income is 40%. Also, assume that there is no transaction costs. (Do not use the $ sign. If your answer is
$123,456.78, enter 123456.78)
Numeric Response
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