You are the Chief Financial Officer (CFO) for a Toronto-based Biotech company. Your company has $100,000,000 of excess cash and on Oct 27, 2021, you notice that the Bank of Canada overnight money market financing rate is 0.19% (this is an annualized overnight rate). If you consider depositing your company's excess cash ($100,000,000) for 30 consecutive days in the money market financiang rate, calculate the after-tax interest income assuming that the tax rate on interest income is 40%. Also, assume that there is no transaction costs. (Do not use the $ sign. If your answer is $123,456.78, enter 123456.78) Numeric Response

You are the Chief Financial Officer (CFO) for a Toronto-based Biotech company. Your company has $100,000,000 of excess cash and on Oct 27, 2021, you notice that the Bank of Canada overnight money market financing rate is 0.19% (this is an annualized overnight rate). If you consider depositing your company's excess cash ($100,000,000) for 30 consecutive days in the money market financiang rate, calculate the after-tax interest income assuming that the tax rate on interest income is 40%. Also, assume that there is no transaction costs. (Do not use the $ sign. If your answer is $123,456.78, enter 123456.78) Numeric Response

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 3E

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