Find the Break-Even Size of Wire Transfer If the Cost

question 89

Multiple Choice

Find the break-even size of wire transfer if the cost of wire transfer is $20,the daily interest rate is 0.02%,and the reduction in float is 3 days.

• A) $1,000
• B) $25,000
• C) $33,333
• D) $100,000

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Definitions:

Stock Price

The cost of purchasing a share of a company’s stock, which fluctuates based on market conditions and the company's financial health.

Dividend Reinvestment

The process of using dividend payouts from shares to purchase additional shares in the same company, compounding the investment's growth.

Dividend Policy

A set of guidelines a company follows to decide how much of its earnings it will pay out to shareholders in dividends.

Dividend

A portion of a company's earnings that is paid to shareholders, typically on a quarterly basis.