1. Alex plc maintains a minimum cash holding of $10 000. The standard deviation of its cash flow is $2000 per day . Every sale or purchase of treasury bills costs $6. The daily interest rate is 9.125% per annum. What is the maximum cash holding recommended by the miller o- Orr model?
1. Alex plc maintains a minimum cash holding of $10 000. The standard deviation of its cash flow is $2000 per day . Every sale or purchase of treasury bills costs $6. The daily interest rate is 9.125% per annum. What is the maximum cash holding recommended by the miller o- Orr model?
2. What is the
Inventory $3750
Receivables $1500
Cash and Bank balances $500
Payables $1800
3. Vale plc has cash outgoings of $2million per annum, with an even spread throughout the year. Treasury Bills currently yield 6% per annum and every sale of treasury bills costs $6. The Baumol model recommends that what amount of treasury bills are sold each time a cash replenishment is needed?
4. ABC ltd has the following extracts from its latest accounts.
Sales $100million, Cost of sales$60million, (all purchases and sales are on credit), Stocks (no change in opening and closing stock) $30 millon, Debtors $20 million, Cash $5million, Current liabilities $15million what is the lenght of working capital in days?
Step by step
Solved in 2 steps with 1 images
