Question: Rework Problem 15 assuming: a. Wildcat maintains a minimum cash balance of $50 million. b. Wildcat maintains a minimum cash balance of $10 million. Based

Rework Problem 15 assuming:

a. Wildcat maintains a minimum cash balance of $50 million.

b. Wildcat maintains a minimum cash balance of $10 million.

Based on your answers in (a) and (b), do you think the firm can boost its profit by changing its cash management policy? Are there other factors that must be considered as well? Explain.

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Given data Q1 Q2 Q3 Q4 Sales in millions 210 180 245 280 Sales 1st quarter of next year 240 AR 68 Collection period 45 of purchases for next Q sales 4... View full answer

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