ation of its cash outlay required indicates that it needs P50,000 for the year. The marketable securities earn an annual rate of 2%. The company incurs P5 to convert marketable securities to cash. V company maintains buffer cash of 5,000 all throughout the year. 1. How much is the annual holding cost as a result of keeping cash in bank? 2. How much is the total annual cost of cas

ation of its cash outlay required indicates that it needs P50,000 for the year. The marketable securities earn an annual rate of 2%. The company incurs P5 to convert marketable securities to cash. V company maintains buffer cash of 5,000 all throughout the year. 1. How much is the annual holding cost as a result of keeping cash in bank? 2. How much is the total annual cost of cas

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter23: Other Topics In Working Capital Management

Section: Chapter Questions

Problem 11MC

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