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

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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
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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