Question: How can a firm use float to slow down its disbursements?

How can a firm use float to slow down its disbursements?

Step by Step Solution

★★★★★

3.32 Rating (170 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

A firm can increase mail float by mailing payments from outofthe... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

433-B-F-F-M (5973).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

Q:

How can a firm use the WMCC schedule and the IOS to find the level of financing/investment that maximizes owner wealth? Why do many firms finance/invest at a level below this optimum?

Q:

How can a firm use a swap to manage its interest rate risk?

Q:

How can a firm in need of short-term financing decide whether or not to take a cash discount offered by its supplier? How would this decision change in the event the firm has no alternative source of...

Q:

BE THE 5 ) which of the following is not a technique used to help firms reduce Collection float ? A ) Wire transfers B ) Disbursements ( ) concentration banking D) A lockbox system 6 ) If you receive...

Q:

iMPORTANT terms of sale are frequently changed by the financial manager in order to increase sales. Question 12 options: True FALSE Which of the following is NOT a motive for a corporation to hold...

Q:

Investments Quick and Slow cost $1,000 each, are mutually exclusive, and have the following cash flows. The firms cost of capital is 10 percent. Cash Inflows Q S Year 1 $1,300 $386 2 386 3 386 4 386...

Q:

Chapter 11 1. Basic sources (forms) of capital include which of the following? a. Debt b. Equity c. Leases d. Convertible bonds e. Both (a) and (b) Answer: _____ 2. The cost of debt capital to a...

Q:

Problem 22-11 Investments Quick and Slow cost $1,000 each, are mutually exclusive, and have the following cash flows. The firm's cost of capital is 12 percent. Cash Inflows S Q $1,200 Year 1 $357 357...

Q:

Proper working capital management requires a manager to focus on a firms working capital, with a particular emphasis on maintaining an optimal level of cash and marketable securities. Cash and...

Q:

Proper working capital management requires a manager to focus on a firm's working capital, with a particular emphasis on maintaining an optimal level of cash and marketable securities. Cash and...

Q:

Pet Partners experienced the following events during its first year of operations, 2016: 1. Acquired cash by issuing common stock. 2. Borrowed cash from a bank. 3. Signed a contract to provide...

Q:

Our company (Aztecs Inc) operates in two states California and Texas. Our apportionable income for the year it is$860,000. In addition, we only have a physical presence in California. As a result we...

Q:

Please provide well-reasoned arguments and examples and engage in constructive discussions to below post. Straight-Line vs. Accelerated Depreciation Straight-Line Depreciation allocates equal...

Q:

Which of the following is FALSE of openend investment companies? (A) They offer shares to the public continuously. (B) Their public offering price cannot be below the net asset value. (C) They charge...

Q:

What is the implication for cross-border trades if it can be shown that interest rate parity is maintained consistently across different markets and different currencies?

Q:

What is the purchasing power parity theorem?

Q:

Explain the concept of interest rate parity. What does this concept imply about the long-run profit opportunities from investing in international markets? What market conditions must prevail for the...

Q:

Which of the following statements is CORRECT? a. The income statement gives us a picture of the firm's financial position at a point in time. b. The statement of cash flows tells us how much cash the...

Q:

The relationship between maximum upper body strength (maxBP) and strength-endurance test (BP60)in high school female athletesis summarized below. Descriptive Statistics: Variable In Mean Sid. Dev....

Q:

b) Presents an argument as to whether or not the Australian share market has information efficiency.