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  3. try cash infusion of 2 million or 3 million then s

try cash infusion of 2 million or 3 million then solve for Transaction Cost and...

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Accounting

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try cash infusion of 2 million or 3 million then solve for Transaction Cost and Holding Cost.
Problem 3 Buccaneer, Inc., has determined that it needs $10 million in cash per week. If Buccaneer needs additional cash, it can sell marketable securities, incurring a fee of $100 for each transaction. If Buccaneer leaves funds in its marketable securities, it expects to earn approximately 0.2% per week on their investment How much is the weekly opportunity cost of cash? (Use a number, must be in decimal form. eg. 6.3%/100, encode 0.063, no commas, no currency, no space) Your answer How much is the cost per transaction? (Use a number, no decimal value, no commas, no currency, no space) Your answer How much is the total demand for cash per week? (Use a number, no decimal value, no commas, no currency, no space) Your answer Using the Baumol Model, how much cash should Buccaneer raise from selling securities each week to minimize its costs of cash? (Use a number, no decimal value, no commas, no currency, no space) Your

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