Wednesday
November 26, 2014

Homework Help: Accounting

Posted by Roger on Tuesday, September 11, 2007 at 1:18am.

Float Management: Merrill Lynch increased in float by mailing checks drawn on West Coast banks to customers in the east and checks drawn on east coast banks to customers in the west. A subsequent class action suit agains Merrill Lynch revealed that in 28 months from September 1976 Merrill Lynch disbursed $1.25 billion in 365,000 checks to New York State customers alone. The plaintiff's lawyer calculated that by usinga remote bank Merrill Lynch had increased its average float by 1 1/2 days. Questions a: How much did Merrill Lynch disburse per day to New York State customers? What was the total gain to Merrill Lynch over the 28 months, assuming and interest rate of 8 percent? What was the present value of the increase in float if the benefits were expected to be permanent? Suppose that the use of remote banks ha involved Merrill Lynch in extra expenses. What was the maxiumum extra cost per check that Merrill Lynch would have been prepared to pay?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Finance - Modos Company has deposited $2000 in checks received from customers. ...
business - Eastern Airlines knows that 20% of its customer fly first class,20% ...
geography - what flatlands extend south from cheapsake bay to the east coast of ...
Corporate Finance - Calculating Float. You have $13,200 on deposit with no ...
science - What is the velocity of a car traveling from the east coast to the ...
Science - Waste produced by people in New York State has been dumped into the ...
physics - A Coast Guard cutter detects an unidentified ship at a distance of 18 ...
5th grade science - How might the history of the US be different if the first ...
social studies- geography - 75% of the active volcanoes are found along the west...
Science - 2. According to the continental drift theory, which of the following ...

Search
Members