Hi expart Provide correct answer not use chatgpt Veggie Burgers, Inc., would like tomaintain its cash account at aminimum level of $246,400; butexpect the standard deviation in netdaily cash flows to be $13,600; theeffective annual rate on marketablesecurities to be 4.8 percent per year,and the trading cost per sale orpurchase of marketable securities to be$28 per transaction.What will be its optimal cash returnpoint?

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Answered: Veggie Burgers, Inc., would like to…

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

ChapterP3: Part 3: Exchange Rate Risk Management

Section: Chapter Questions

Problem 4Q

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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
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