Konyagi plc has an average daily cash balance of 10,500. Total cash needed for the year is
Question:
Konyagi plc has an average daily cash balance of
£10,500. Total cash needed for the year is £65,000. The interest rate is 3 per cent, and replenishing the cash costs €17 each time. What are the opportunity cost of holding cash, the trading cost, and the total cost? What do you think of Konyagi’s strategy?
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Step by Step Answer:
Konyagis Cash Management Analysis 1 Opportunity Cost of Holding Cash Assuming the cash is not invest...View the full answer
Answered By
Mehwish Aziz
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Related Book For 
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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