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Management
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Oakwood University
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Running head: FINANCIAL MANAGEMENT 1
Financial Management
Institution Affiliation
Date
a. What can Alexis do regarding the handling of her current balances?

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FINANCIAL MANAGEMENT 2
The $1,200 cash target in the checking account can be transferred into the savings
account as no minimum balance is required. The $15,000 in the savings account can be used
to invest in marketable securities as the yield per annum is high (Block et al., 2018).
b. What do you suggest that she do with her monthly surpluses?
Alexis has a surplus of ($4,200 2,000 850) = $1,350. The surplus can be saved at an
annual interest rate of 2% or can be invested into marketable securities at a yield rate of
4.75% annually (Brigham & Ehrhardt, 2019).
c. What do you suggest Alexis do about the manner in which she pays her bills?
Savings for paying bills earlier $600 (2000 * 9/30)
Interest; 600 * 2 * 1/12 / 100 = $1
Interest in marketable securities; 600 * 4.75 * 1/12 / 100 = 2.34
d. Can Alexis grow her earnings by better managing her cash balances? Show your work.
Monthly Earnings
Particulars
Amount $
Savings account (15,000 * 2 * 1/12 / 100)
25
Monthly deposits (500 * 2 * 1/12 /100)
0.83
Total
25.83
Earnings from investing in marketable securities
Investing savings (15,000 + 1200); 16,200 * 4.75% *
1/12 /100 = 64.125
64.13
On 1350 excess (1350 * 4.75% *1/12 / 100)
5.34
Savings on early bill payment
2.34

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Running head: FINANCIAL MANAGEMENT Financial Management Institution Affiliation Date a. What can Alexis do regarding the handling of her current balances? 1 FINANCIAL MANAGEMENT 2 The $1,200 cash target in the checking account can be transferred into the savings account as no minimum balance is required. The $15,000 in the savings account can be used to invest in marketable securities as the yield per annum is high (Block et al., 2018). b. What do you suggest that she do with her monthly surpluses? Alexis has a surplus of ($4,200 – 2,000 – 850) = $1,350. The surplus can be saved at an annual interest rate of 2% or can be invested into marketable securities at a yield rate of 4.75% annually (Brigham & Ehrhardt, 2019). c. What do you suggest Alexis do about the manner in which she pays her bills? Savings for paying bills earlier $600 (2000 * 9/30) Interest; 600 * 2 * 1/12 / 100 = $1 Interest in marketable securities; 600 * 4.75 * 1/12 / 100 = 2.34 d. Can Alexis grow her earnings by better managing her cash balances? Show your work. Monthly Earnings Particulars Amount $ Savings account (15,000 * 2 * 1/12 / 100) 25 Monthly deposits (500 * 2 * 1/12 /100) 0.83 Total 25. ...
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