A firm expects to have funds of $150000idle for 60 days.If the firm could purchase marketable...
A firm expects to have funds of $150000idle for 60 days.If the
firm could purchase marketable securities yielding 10% and pay
brokerage fees of $1 500 the firm...(assume 365 daysin a
year)
1. should should leave the $150000 in liquid cash
2. should invest the funds for more than 60mdays due to the
favourable rate
3. should make the investment since interest earned exceeds
brokerage fees
4. should make the investment since brokerage fees exceed interest
earned.
Please explain the rationale and calculation.
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A firm expects to have funds of $150000idle for 60 days.If the
firm could purchase marketable...
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