Beauty Ltd. has an excess cash of ` 16,00,000 which it wants to invest in short-term marketable
Fantastic news! We've Found the answer you've been seeking!
Question:
Beauty Ltd. has an excess cash of ` 16,00,000 which it wants to invest in short-term marketable securities. Expenses relating to investment will be `40000. The securities invested will have an annual yield of 8%. The company seeks your advice as to period of investment so as to earn a pre-tax income of 4%. Also, find the minimum period for the company to break-even its investment expenditure. Ignore time value of money.
Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
Posted Date: