The Timberline Firm Expects a Total Need of €12,500 Over

question 46

Multiple Choice

The Timberline firm expects a total need of €12,500 over the next 3 months.They have a beginning cash balance of €1,500,and cash is replenished when it hits zero.The fixed cost of selling securities to replenish cash balances is €3.50.The interest rate on marketable securities is 8% per annum.There is a constant rate of cash disbursement and no cash receipts during the month. Based on the firm's current practice,how many times during the next 3 months will the cash balance be replenished?

• A)3.33 times
• B)4.42 times
• C)8.33 times
• D)13.35 times
• E)None of the above.

---

Definitions:

Paragraph

A distinct section of writing that deals with a particular idea, typically starting on a new line and consisting of one or more sentences.

Argument

A coherent series of statements leading from a premise to a conclusion, used in logical reasoning or debate.

Explanation

A statement made to clarify something and make it understandable.

Argument

A set of statements or reasons made to support or oppose a proposition.