What is the total opportunity cost for a month

Reference no: EM13269736

The Smythe firm expects a total cash need of $9,000 over the next four months. They have a beginning cash balance of $1,000, and cash is replenished when it hits zero. The fixed cost of selling securities to replenish cash balances is $4.00. 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. What is the total opportunity cost for a month based on the firm's current practice?

Reference no: EM13269736

Questions Cloud

Determine the period of oscillation of the system : A very light rigid rod with a length of 0.523 m extends straight out from one end of a meter stick. Determine the period of oscillation of the system

What is the frequency of the rods vibration : A thin 7.3-m metal rod sustanins a longitudinal standing wave with vibration antinodes at each end of the rod. What is the frequency of the rod's vibration

What is the expected rate of return on the market : You own a stock that has an expected return of 16.48 percent and a beta of 1.33. The U.S. Treasury bill is yielding 3.65 percent and the inflation rate is 2.95 percent. What is the expected rate of return on the market?

An interest rate of 7.5% compounded monthly : Investment A is a 13 year annuity that features end of month $1500 payments and has an interest rate of 7.5% compounded monthly. INvestment B is a 7 percent continuously compounded lump sum investment also good for 13 years. how much money wo..

What is the total opportunity cost for a month : There is a constant rate of cash disbursement and no cash receipts during the month. What is the total opportunity cost for a month based on the firm's current practice?

Find the speed at which individual waves travel on each wire : Two wires, each of length 1.2 m, are stretched between two fixed supports. Find the speed at which the individual waves travel on each wire

Discuss why maintaining professionalism : Define personal image and discuss why maintaining professionalism while on the job and after hours are important. Give at least two examples of ways health care providers exhibit professionalism in practice.

What is the annual value of the depreciation tax shield : The project is expected to increase annual sales by $338,000 and annual cash expenses by $184,000. The company has a marginal tax rate of 32 percent. What is the annual value of the depreciation tax shield?

What is the percentage of aliasing level at the frequency f : The sampling frequency in a DSP system is fs=8 kHz. Anti-aliasing filter used in the system is the second-order Butterworth filter with cutoff frequency of fc=3.4 kHz. What is the percentage of aliasing level at the frequency f=2.5 kHz

User Account

All Pages