White Whale Corporation has an average daily cash balance of $300. Total cash needed for the year
Question:
White Whale Corporation has an average daily cash balance of $300. Total cash needed for the year is $30,000. The interest rate is 5 percent, and replenishing the cash costs $6 each time. What are the opportunity cost of holding cash, the trading cost, and the total cost? What do you think of White Whale’s strategy?
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To calculate the opportunity cost of holding cash the trading cost and the total cost for White Whale Corporation you can use the following informatio...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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