{"id":172699,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/finance-questions-please-show-how-you-arrived-at-the-answer-5-00-2"},"modified":"2018-10-24T09:07:53","modified_gmt":"2018-10-24T09:07:53","slug":"finance-questions-please-show-how-you-arrived-at-the-answer-5-00-2","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/finance-questions-please-show-how-you-arrived-at-the-answer-5-00-2\/","title":{"rendered":"Finance questions &#8211; Please show how you arrived at the answer &#8211; $5.00"},"content":{"rendered":"<p>Halliday Inc. receives a $2 million payment once a year. Of this amount, $700,000 is needed for cash payments made during the next year. Each time Halliday deposits money in its account, a charge of $2.00 is assessed to cover clerical costs. If Halliday can hold marketable securities that yield 5 percent, and then convert these securities to cash at a cost of only the $2 deposit charge, what is the total cost for one year of holding the minimum cost cash balance according to the Baumol model?<\/p>\n<p>a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $7,483<\/p>\n<p>b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $187<\/p>\n<p>c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $3,741<\/p>\n<p>d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $374<\/p>\n<p>e.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $748 &nbsp;&nbsp;&nbsp; &nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Halliday Inc. receives a $2 million payment once a year. Of this amount, $700,000 is needed for cash payments made during the next year. Each time Halliday deposits money in its account, a charge of $2.00 is assessed to cover <a href=\"https:\/\/www.benedictsol.com\/blogs\/finance-questions-please-show-how-you-arrived-at-the-answer-5-00-2\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-172699","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/172699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=172699"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/172699\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=172699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=172699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=172699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}