Watkins Resources faces a smooth annual demand for cash of $1.66 million, incurs transaction costs of $69 every time the firm sells marketable securities, and can earn 3.1 percent on its marketable securities. What will be its optimal cash replenishment level? (Enter your answer in dollars not in millions. Round your answer to 2 decimal places.) Optimal cash

a) What is the optimal transaction size? b) What should be Rosal's average cash balance? c) What is the total cost?

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.)

Optimal cash balance. The Madatung Corporation plans to have P 1 million in steady cash outlays for next year. The firm believes that it will face an opportunity interest rate of 15% and will incur a cost of P 200 each time it borrows (or withdraws). Required: Using the Baumol Model: 1. Determine the transactions demand for cash (the optimal borrowing or withdrawal lot size) for Madatung Company. 2. What will be the cash cycle for the firm (in days)? 3. What would be the average cash balance for the firm? 4. Compute the total relevant cost of cash balance. Jor