HotFoot Shoes would like to maintain its cash account at a minimum level of $33,000, but expects standard deviation in net daily cash flows to be $4,800, the effective annual rate on marketable securities be 7.3 percent per year, and the trading cost per sale or purchase of marketable securities to be $280 p ransaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermedia calculations. Round your final answer to 2 decimal places.) Optimal cash return point $

HotFoot Shoes would like to maintain its cash account at a minimum level of $33,000, but expects standard deviation in net daily cash flows to be $4,800, the effective annual rate on marketable securities be 7.3 percent per year, and the trading cost per sale or purchase of marketable securities to be $280 p ransaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermedia calculations. Round your final answer to 2 decimal places.) Optimal cash return point $

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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HotFoot Shoes would like to maintain its cash account at a minimum level of $42,000, but expects the standard deviation in net daily cash flows to be $5,700, the effective annual rate on marketable securities to be 5.8 percent per year, and the trading cost per sale or purchase of marketable securities to be $130 per transaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places.) Optimal cash return point $
HotFoot Shoes would like to maintain its cash account at a minimum level of $39,000, but expects the standard deviation in net daily cash flows to be $5,400, the effective annual rate on marketable securities to be 6.1 percent per year, and the trading cost per sale or purchase of marketable securities to be $160 per transaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Hollywood Shoes would like to maintain their cash account at a minimum level of $67,000, but expect the standard deviation in net daily cash flows to be $5,700; the effective annual rate on marketable securities to be 6.50 percent per year; and the trading cost per sale or purchase of marketable securities to be $270 per transaction. What will be their optimal cash return point? (Round your answer to 2 decimal places.)
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
National Co. would like to maintain its cash account at a minimum level of P25,000, but expect the standard deviation in net daily cash flows to be P2,000; the effective annual rate on marketable securities to be 7.5% per year, and the trading cost per sale or purchase of marketable securities to be P200 per transaction. What will be their optimal cash return point?
Lux Co. would like to maintain its cash account at a minimum level of P25,000, but expect the standard deviation in net daily cash flows to be P2,000; the effective annual rate on marketable securities to be 7.5% per year, and the trading cost per sale or purchase of marketable securities to be P200 per transaction. What will be their optimal upper cash limit
Stellar Shoes would like to maintain their cash account at a minimum level of $25,000, but expects the standard deviation in net dally cash flows to be $2,000; the effective annual rate on marketable securities to be 5 percent per year, and the trading cost per sale or purchase of marketable securities to be $100 per transaction. What will be their optimal upper cash limit? Multiple Choice $114,277.02 $38,092.34 $27,000 $64,27702
Hollywood Shoes would like to maintain their cash account at a minimum level of $51,000, but expect the standard deviation in net daily cash flows to be $4,100; the effective annual rate on marketable securities to be 6.25 percent per year; and the trading cost per sale or purchase of marketable securities to be $110 per transaction. What will be their optimal upper cash limit? (Round your answer to the nearest dollar amount.) $55,100 $72,328.32 $111,859.83 $74,575.50
Hollywood Shoes would like to maintain their cash account at a minimum level of $64,000, but expect the standard deviation in net daily cash flows to be $5,400; the effective annual rate on marketable securities to be 7.00 percent per year, and the trading cost per sale or purchase of marketable securities to be $240 per transaction. What will be their optimal upper cash limit? Note: Round your answer to the nearest dollar amount. Multiple Choice $69,400 $83,546 $155.437 $86,922
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Your consulting firm will produce cash flows of $190,000 this year, and you expect cash flows thereafter to keep pace with any increase in the general level of prices. The interest rate currently is 5.2%, and you anticipate inflation of about 1.2%. a. What is the present value of your firm's cash flows for years 1 through 5? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Present value b. How would your answer to (a) change if you anticipated no growth in cash flow? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Present value