The Saban Corporation is trying to decide whether to switch to a bank that will accommodate electronic funds transfers from Saban's customers. Saban's financial manager believes the new system would decrease its collection float by as much as 7 days. The new bank would require a compensating balance of $ 21 comma 000 , whereas its present bank has no compensating balance requirement. Saban's average daily collections are $ 9 comma 900 , and it can earn 8.5 % on its short-term investments. Should Saban make the switch? (Assume the compensating balance at the new bank will be deposited in a non-interest-earning account.)
+2
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The Saban Corporation is trying to decide whether to switch to a bank that will accommodate electronic funds transfers from Saban's ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Home » Business » The Saban Corporation is trying to decide whether to switch to a bank that will accommodate electronic funds transfers from Saban's customers. Saban's financial manager believes the new system would decrease its collection float by as much as 7 days.