a. Which would a firm be most interested in reducing, collection or disbursement float? Why? b. How

Question:

a. Which would a firm be most interested in reducing, collection or disbursement float? Why?
b. How is daily average float calculated?
c. What is the benefit from reducing or eliminating float?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Fundamentals of corporate finance

ISBN: 978-0073382395

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

See More Books

Question Posted: Jun 23, 2023 08:01 AM

See More Questions

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
The Inland Empire Food Store Company has stated in its advertising that the average shopper will save more than $5.00 per week by shopping at Inland stores. A consumer group has decided to test this...
Assume that a patient has 80 percent coverage for medical services but no coverage for prescription drugs. An 80 percent drug benefi t is added. Show graphically what will happen to the relative...
Define each of the following types of professional services: consulting services, attestation services, agreed-upon procedures engagements, and assurance services. Explain how, if at all, these...
What does the future look like for Health Care Information Technology in terms of software development, education, research, and practices? What challenges could arise?
Estimate the overall odds ratio of the set of tables in Problem3.6 and test whether the odds ratios are the same across the tables. Problem3.6 is: 3.6 Use the DOS data to test whether there is gender...
The air pollution project discussed in the chapter has progressed over the past several weeks, and it is now the end of week 8. Lester Harky would like to know the value of the work completed the...
4. A pharma company you work for makes jars with cream. It claims that the average amount of cream in a jar is at least 90 g. To prove that claim to the customers you decide to test the claim at a...
Delaplane Computers gets most of its component parts from suppliers in Pacific Rim countries, who ship to the companys main distribution center near Long Beach, California, where computers are built...
a. What is the transaction motive, and how does it lead firms to hold cash? b. What is the cost to the firm of holding excess cash?
a. What is a lockbox? What purpose does it serve? b. What is a concentration bank? What purpose does it serve?
Why is the CH 3 + cation in mechanism I properly considered a reaction intermediate?
Why is a decrease in the supply of Federal funds shown as an upshift of the supply curve in Figure 16.3, whereas an increase in Federal funds is shown as a downshift of the supply curve? Figure 16.3:...
Suppose that Lady Gaga goes to Las Vegas to play poker and at the last minute her record company says it will reimburse her for 50 percent of any gambling losses that she incurs. Will Lady Gaga wager...
Discuss risk management systems.
What are the basic risk mitigation strategies?
Critically evaluate the Basel frameworks.
Let S = $40, = 0.30, r = 0.08, T = 1, and = 0. Also let Q = $60, Q = 0.50, Q = 0.04, and = 0.5. What is the price of a standard 40-strike call with S as the underlying asset? What is the price of...
Chris Zulliger was a chef at the Plaza Restaurant in the Snowbird Ski Resort in Utah. The restaurant is located at the base of a mountain. As a chef for the Plaza, Zulliger was instructed by his...
Nimitz Rental Company had depreciation expenses of $108,905, interest expenses of $78,112, and an EBIT of $1,254,338 for the year ended June 30, 2011. What are the time sinterest-earned and cash...
Conseco, Inc., has a debt ratio of 0.56. What are the companys debt-to-equity ratio and equity multiplier?
Cisco Systems has total assets of $35.594 billion, total debt of $9.678 billion, and net sales of $22.045 billion. Its net profit margin for the year is 20 percent, while the operating profit margin...
The We Like To Study Bonds Company issued a $1,000 par value, 15-year bond that has a 3.5% annual coupon. If the market is requiring an 7% rate of return on bonds of this level of risk: SHOW ALL WORK...
Does Florida regulate advertising guidelines for family law attorneys?
An insurance agent is trying to sell you an immediate retirement annuity that offers $16,000 per year at the end of each of the next 30 years. The price of the investment proposed by the agent is...

a. Which would a firm be most interested in reducing, collection or disbursement float? Why? b. How

Question:

Step by Step Answer:

a A firm would be most interested in reducing collection float Collection float refers to the time it takes for funds to become available after a customer initiates a payment By reducing collection fl...View the full answer

Fundamentals of corporate finance

Students also viewed these Business questions