Setting of optimal cash balance, Finance Basics

Setting of Optimal Cash Balance

Cash is often identified like a non-earning asset since holding cash quite than a revenue-generating asset includes a cost in form of foregone interest.  Therefore the firm must hold the cash balance which will enable it to meet its scheduled payments like they fall due and give a margin for safety.  So there are several techniques used to find out the optimal cash balance.  These are like:

The Cash Budget

The Cash Budget confirms the firm's projected cash outflows and inflows over some particular period. This technique has already been discussed in another earlier course.  However the student must revise the cash budget.

Posted Date: 2/1/2013 2:14:52 AM | Location : United States







Related Discussions:- Setting of optimal cash balance, Assignment Help, Ask Question on Setting of optimal cash balance, Get Answer, Expert's Help, Setting of optimal cash balance Discussions

Write discussion on Setting of optimal cash balance
Your posts are moderated
Related Questions
Who is Floor Broker Floor brokers aren't many in number. They execute orders for fellow  members  and  receive  a  share  brokerage  commission  charged  by  a commission broke

You buy a SML Bond for $980.  The bond has a face value of $1000 and an yearly  coupon rate of 8%.  There are five years left until maturity. a. What is the yield to maturity on

Question 1: a) What is dependency ratio and why is it important for pensions? b) For which types of schemes is dependency ratio mostly relevant? Explain c) What is the

#what is an interest?

Proforma Balance Sheet This refers to the projected balance sheet at the finish of forecasting period.  The items in the proforma balance that vary with sales would be determi

Actions of Shareholders in Agency Conflict a) Disposal of assets required like collateral for the debt in this. In this case the bondholder is exposed to more risk becaus

Access to Capital Markets and Ownership Structure  Ownership Structure A dividend policy may be driven with Time Ownership Structure as like in small firms whereas manage

Bills of Exchange Bills of Exchange are a source of finance in specifically in the export trade. A bill of swapping is an unconditional arrange in writing addressed via one pe


i have the information given but i am having trouble getting the income statement done correctly