"eggie Burgers, Inc. would like to maintain its cash account at a minimum level of $258,000 but expects the standard deviation in net aily cash flows to be $13,300, the effective annual rate on marketable securities to be 4.4 percent per year, and the trading cost per ale or purchase of marketable securities to be $34.00 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
"eggie Burgers, Inc. would like to maintain its cash account at a minimum level of $258,000 but expects the standard deviation in net aily cash flows to be $13,300, the effective annual rate on marketable securities to be 4.4 percent per year, and the trading cost per ale or purchase of marketable securities to be $34.00 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
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 $258,000 but expects the standard deviation in net
daily cash flows to be $13,300, the effective annual rate on marketable securities to be 4.4 percent per year, and the trading cost per
sale or purchase of marketable securities to be $34.00 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4d9f036e-8e9e-4b53-a30d-4091afb339b3%2F5171b2aa-8ef0-4f8d-b973-d5adae2ba3cd%2Feetnl39_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Veggie Burgers, Inc. would like to maintain its cash account at a minimum level of $258,000 but expects the standard deviation in net
daily cash flows to be $13,300, the effective annual rate on marketable securities to be 4.4 percent per year, and the trading cost per
sale or purchase of marketable securities to be $34.00 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
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