Define what will be the optimal cash replenishment level

Reference no: EM132074850

Qusetion: Rose Axels faces a smooth annual demand for cash of $5.12 million, incurs transaction costs of $273 every time the company sells marketable securities, and can earn 4.1 percent on its marketable securities.

What will be its optimal cash replenishment level? (Enter your answer in dollars not in millions. Round your answer to 2 decimal places.)

Reference no: EM132074850

Questions Cloud

Development methodologies-proposal report : Prepare a Case for developing an Information system for a Business Application Project.

Solve optimal cash problem using given data : Rose Axels faces a smooth annual demand for cash of $5.18 million, incurs transaction costs of $267 every time the company sells marketable securities.

As globalization continues to expand worldwide : As globalization continues to expand worldwide, multinational financial institutions become more important in helping nascent economies.

Which concept or piece of new information most surprised you : Which concept or piece of new information most surprised you? Why

Define what will be the optimal cash replenishment level : Rose Axels faces a smooth annual demand for cash of $5.12 million, incurs transaction costs of $273 every time the company sells marketable securities.

What is rocktech horizon or continuing-value : Rocktech Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years.

Create a fictitious company with a product : For your Marketing Plan Project, you need to create a fictitious company with a product (or line of products) or service that you want to analyze and promote.

Defining business ethics within organizations : What are the cultural frameworks for defining business ethics within organizations?

Explain the bond-yield-plus-risk-premium method : Rollins Corporation is constructing its MCC schedule. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity.

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages