Question: No More Pencils Inc. disburses cheques every two weeks that average $93,000 and take seven days to clear. How much interest can the company earn

No More Pencils Inc. disburses cheques every two weeks that average $93,000 and take seven days to clear. How much interest can the company earn annually if it delays transfer of funds from an interest-bearing account that pays 0.015 percent per day for these seven days? Ignore the effects of compounding interest.

Step by Step Solution

★★★★★

3.43 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The interest that the company could earn will be th... View full answer

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)

472-B-C-F-F-P-M (1270).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Loch Alva Inc. disburses cheques every two weeks that average $86,000 and take seven days to clear. How much interest can the company earn annually if it delays transfer of funds from an...

No More Pencils, Inc., disburses checks every two weeks that average $97,000 and take seven days to clear. How much interest can the company earn annually if it delays transfer of funds from an...

No More Pencils, Inc., disburses checks every two weeks that average $61,700 and take seven days to clear. How much interest can the company earn annually if it delays transfer of funds from an...

No More Pencils Inc disburses cheques every two weeks that average $89.000 and take seven days to clear ignore the effects of compounding interest. How much interest can the company earn annually if...

No More Pencils Inc. disburses cheques every two weeks that average $77,000 and take six days to clear. Ignore the effects of compounding interest. How much interest can the company earn annually if...

asmin.khaled. 9041083 QUESTION TWO (20 Polnts) *) You go to the post office once a month and picks up two cheques: one for $17000 and one for $6000. The larger cheque takes four days to clear after...

a) The Tommy Byrne Company is currently holding $700,000 in cash. It projects that over the next year its cash outflows will exceed cash Inflows by $360,000 per month. i. How much of the current cash...

A mail-order firm processes 4,300 checks per month. Of these, 60 percent are for $33 and 40 percent are for $65. The $33 checks are delayed two days on average; the $65 checks are delayed three days...

No More Pencils, Inc., disburses checks every two weeks that average $89,000 and take seven days to clear. How much interest can the company earn annually if it delays transfer of funds from an...

As a stock market analyst for a major brokerage house, you are responsible for knowing everything about the automotive companies. In particular, Ford is scheduled to release its net earnings for the...

The Hatfield family lives on the east side of the Hatatoochie River, and the McCoy family lives on the west side. Each familys diet consists of fried chicken and corn-on-the-cob, and each is...

the basic point being made by Modigliani and miller is that in the absent of taxes and transaction costs. greater debt leads to a lower weighted - average cost of capital and greater firm value

6.43 The controller of Saratoga Auto Cylinder Company believes that the identification of the vanable and fixed components of the firm's costs will enable the firm to make better planning and control...

Calculating Real Rates of Return If Treasury bills are currently paying 8 percent and the inflation rate is 45 percent, what is the approximate real rate of interest the exact real rate?

Inflation and Nominal Returns Suppose the real rate is 4 percent and the inflation rate is 5.8 percent what rate would you expect to see on a Treasury bill?

Nominal and Real Returns an investment offers a 15 percent total return over the coming year Bill Bernanke thinks the total real return on this investment will be only 7 percent. What does Bill...

How can Rupert hedge his dollar exposure with a currency futures contract? What is the difference between a futures contract and a forward contract? Does the currency futures contract need to be...

Question 5: If X0CHF/USD=1.17 and then one year later X1CHF/USD=0.97 by how many percent did the USD appreciate/depreciate relative to the CHF ? 5.63%2.30%17.09%12.80% Question 6 2 pts Question 6: If...

Assume Stocks A and B have the following characteristics: Stock A B Expected Return 9.5% 15.5% Standard Deviation 33.5% 62.5% The covariance between the returns on the two stocks is .0015. 2. Suppose...