What is the optimal cash conversion size

Assignment Help Accounting Basics
Reference no: EM132576290

Question - Gear Inc., has a total annual cash requirement of P14,700,000 which are to be paid uniformly. Gear has the opportunity to invest the money at 24% per annum. The company spends, on the average, P40 for every cash conversion to marketable securities. What is the optimal cash conversion size?

Reference no: EM132576290

Questions Cloud

What debt ratio did Atty Tristan propose : What debt ratio did Atty. Tristan propose in order to raise the return on equity (ROE) to 150 percent of the present level
Role of management in 20th century : What was the role of management in the 20th century? What is the role of management in today's business world? What is the difference?
Calculate the potential difference : Calculate the potential difference VB - VA - The surfaces of the spheres are a distance L + 2d from each other, and locations A and B are a distance
Look at the three major shareholders of the company : Look at the THREE major shareholders of the company for the last five years (if available, if not just use as many years as possible).
What is the optimal cash conversion size : Gear Inc., has a total annual cash requirement of P14,700,000 which are to be paid uniformly. What is the optimal cash conversion size
Find information on the privacy act : Use the Internet to explore and find information on the Privacy Act of 1974. State what components of the act apply to Federal agencies.
How long will it take for a investment to grow : Assume that no withdrawals are made. Do not round any intermediate computations, and round your answer to the nearest hundredth.
How much should be recognized as customer database : Outcome 3 - 60% probability of cash flows of P10,000 at the end of each year for 3 years. How much should be recognized as customer database
What is the total amount received by all the partners : X, Y and Z have capital balances of P40,000, P50,000 and P18,000, respectively. What is the total amount received by all the partners

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd