--%>
Assignment Help - homework help

Factors affecting the choice of minimum cash balance amount

Elucidate the factors which affect the choice of a minimum cash balance amount.

E

Expert

Verified

The minimum cash balance amount is calculated by how easy it is to raise funds when required, how predictable the flows of cash are and how risk averse administrators are.

   Related Questions in Financial Management

  • Q : Mini case B. Show how Kareem's WACC

    B. Show how Kareem's WACC would change if the tax rate dropped to 25 percent and the estimated cost of equity capital were based on a risk-free rate of 7 percent, a market risk premium of 8 percent, and a systematic risk measure or beta of 2.0.

    		•
  • Q : What about exotic or over-the-counter

    What about exotic or over-the-counter (OTC) contracts?

    		•
  • Q : What are random factors for

    What are random factors for risk-neutral drifts?

    		•
  • Q : Advantage of less equilibrium exchange

    Assume that the pound is pegged to gold at 6 pounds per ounce, while the franc is pegged to gold at 12 francs per ounce. Of course it implies that the equilibrium exchange rate ought be two francs per pound. If the current market exchange rate is 2.2 francs pe

    		•
  • Q : Cash flows and accounting profits Why

    Why cash flows and accounting profits are not considered the same thing.

    		•
  • Q : Question on unbiased predictor and

    The March 2000 Mexican peso futures contract holds a price of $0.11695. You believe the march spot price will be $0.08500. In which speculative location would you enter to try to earn profit from your beliefs? Illustrates your anticipated profits letting yo

    		•
  • Q : Legal and ethical obligations Compare

    Compare and contrast the ethical and legal obligations for a: (i) CFP practitioner (ii) member of the FPA (iii) a financial services professional.

    		•
  • Q : Acc Fin Assume that you inherited some

    Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss is selling securities that call for 4 payments of $50 (1 payment at the end of each of the next 4 years) plus an extra payment of $1,000 at the end of Year 4. Your friend sa

    		•
  • Q : Example to lay off the swap to an

    Suppose you are the swap bank in the Eli Lilly swap. Create an example of how you might lay off the swap to an opposing counterparty.The swap bank may attempt to lay off the swap on Japanese MNC which has issued yen denominated debt to finance

    		•
  • Q : Explain marked to market by using the

    Explain marked to market by using the implied volatility.

    		•