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NEW QUESTION: 1
Company RST is a seasonal retailer who has just completed its holiday season and is temporarily flush with cash. The treasurer has identified approximately $15 million of excess balances and is trying to determine what to do with the surplus cash. Cash forecasts show that the funds will be needed in approximately 30 days to replenish inventory. Which of the following plans should the treasurer implement immediately?
A. Leave the funds in RST's bank account earning an ECR of 1%.
B. Purchase low-risk, short-term investments yielding 2%.
C. Buy a long-term, highly rated investment paying 2.10%.
D. Prepay a $15 million, 5% loan maturing in 1 year.
Answer: B
NEW QUESTION: 2
A. Option A
B. Option B
C. Option D
D. Option C
Answer: D
NEW QUESTION: 3
A. Option A
B. Option B
C. Option D
D. Option C
Answer: D
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