Firm y expects a total cash need of 14500 over the next 4, Ask an Expert

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Firm Y expects a total cash need of $14,500 over the next 4 months. They have a beginning cash balance of $2,500, and cash is replenished when it hits zero. The fixed cost of selling securities to replenish cash balances is $3.50. The interest rate on marketable securities is 8% per annum. There is a constant rate of cash disbursement and no cash receipts during the month.

Based on the firm's current practice, what is the average daily cash balance (a month has 30 days)?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91569740

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