Hollywood Shoes would like to maintain their cash account at a minimum level of $52,000, but...

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Finance

Hollywood Shoes would like to maintain their cash account at aminimum level of $52,000, but expect the standard deviation in netdaily cash flows to be $4,200; the effective annual rate onmarketable securities to be 6.50 percent per year; and the tradingcost per sale or purchase of marketable securities to be $120 pertransaction. What will be their optimal upper cash limit? (Roundyour answer to the nearest dollar amount.)

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Hollywood Shoes would like to maintain their cash account at aminimum level of $52,000, but expect the standard deviation in netdaily cash flows to be $4,200; the effective annual rate onmarketable securities to be 6.50 percent per year; and the tradingcost per sale or purchase of marketable securities to be $120 pertransaction. What will be their optimal upper cash limit? (Roundyour answer to the nearest dollar amount.)

Hollywood Shoes would like to maintain their cash account at a minimum level of $52,000, but...

50.1K

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Finance

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