Veggie Burgers, Inc. would like to maintain its cash account at a minimum level of $248,000 but expects the standard deviation in net daily cash flows to be $12,300, the effective annual rate on marketable securities to be 5.0 percent per year, and the trading cost per sale or purchase of marketable securities to be $29.00 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
Veggie Burgers, Inc. would like to maintain its cash account at a minimum level of $248,000 but expects the standard deviation in net daily cash flows to be $12,300, the effective annual rate on marketable securities to be 5.0 percent per year, and the trading cost per sale or purchase of marketable securities to be $29.00 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
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
Problem 1PS
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Transcribed Image Text:Veggie Burgers, Inc. would like to maintain its cash account at a minimum level
of $248,000 but expects the standard deviation in net daily cash flows to be
$12,300, the effective annual rate on marketable securities to be 5.0 percent
per year, and the trading cost per sale or purchase of marketable securities to
be $29.00 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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