daily cash flows to be $12,100, the effective annual rate on marketable securities to be 4.8 percent per year, and the trading c sale or purchase of marketable securities to be $28.00 per transaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations. Round your answ decimal places.) Optimal cash return point $ 287,757.72
daily cash flows to be $12,100, the effective annual rate on marketable securities to be 4.8 percent per year, and the trading c sale or purchase of marketable securities to be $28.00 per transaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations. Round your answ decimal places.) Optimal cash return point $ 287,757.72
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter23: Other Topics In Working Capital Management
Section: Chapter Questions
Problem 11MC
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![Veggie Burgers, Inc. would like to maintain its cash account at a minimum level of $246,000 but expects the standard deviation net
daily cash flows to be $12,100, the effective annual rate on marketable securities to be 4.8 percent per year, and the trading cost per
sale or purchase of marketable securities to be $28.00 per transaction.
What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2
decimal places.)
Optimal cash return point
$
287,757.72](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F38f6747f-232e-40bb-8086-26568d90be2f%2F829fc4a8-2dcd-4a29-a0f2-c852ad05f09d%2F44g40pe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Veggie Burgers, Inc. would like to maintain its cash account at a minimum level of $246,000 but expects the standard deviation net
daily cash flows to be $12,100, the effective annual rate on marketable securities to be 4.8 percent per year, and the trading cost per
sale or purchase of marketable securities to be $28.00 per transaction.
What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2
decimal places.)
Optimal cash return point
$
287,757.72
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