19.5k views
3 votes
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 cash return point? (round your answer to 2 decimal places.)

User Eshan
by
8.3k points

1 Answer

4 votes
1> $55,100

2>$72,328.32

3>$111,859.83

4>$74,575.50


User Dmytro Evseev
by
8.0k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories