The Gibson Co

question 134

Multiple Choice

The Gibson Co. generally receives 4 checks a month. A month is defined as a 30 day period. The check amounts and the collection delay for each check are shown below. Given this information, what is the amount of the average daily float?

• A) $1,682.35
• B) $2,723.33
• C) $3,800.00
• D) $4,805.88
• E) $5,720.00

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Definitions:

Risk-free Rate

A hypothetical yield of an investment that is considered to have no financial risk, usually mirrored by the returns on government bonds.

Abnormal Return

The difference between the actual return of an investment and the expected return given its risk and the market's performance.

Advisory Service

A service provided by financial advisors or professionals offering expert advice on investment, planning, and managing finances.

Dividend

A share of a corporation's profits allocated to its shareholders, typically in cash or in the form of more shares.