What are the return point and upper control point

Assignment Help Financial Accounting

Reference no: EM132814237

Problem - Hanson Corporation expects its cash flows to behave in a random manner, as assumed by the Miller and Orr model. The following information has been gathered.

Annual yield on marketable securities = 8 percent

The fixed cost of effecting a marketable securities transaction = Rs. 1700

The standard deviation of the change in daily cash balance = Rs. 27,000

The management wants to maintain a minimum cash balance of Rs. 3,500,000

Required - What are the 'return point' and 'upper control point'?

Reference no: EM132814237

Questions Cloud

What are your 2 strongest interpersonal skills : What are your 2 strongest interpersonal skills? What can you do to address those 2 limitations?

What cash remittance to consignor and the consignment profit : What cash remittance to consignor and the consignment profit are? On May 1, the Thailand products Company ships five (5) of its appliances to the Korea

Determining the impact on productivity : What will be the impact on productivity (measured in crates per labor -hour) if the buyers are hired?

Find what is difference of a biological asset from inventory : Find What is the difference of a biological asset from an inventory? Give at least 5 biological assets and identify their agricultural produce.

What are the return point and upper control point : The management wants to maintain a minimum cash balance of Rs. 3,500,000. What are the 'return point' and 'upper control point'

Main ideas around professional self-management : Question 1b. Briefly explain one (1) method you would use to undertake self-appraisal.

Find what is the balance of cash account after first payment : A balance sheet for the partnership of Mavi, Cong and Viy, who share profits in the ratio. What is the balance of cash account after the first payment?

Facilitate ongoing professional development : Name few self-development opportunities that you would engage in order to facilitate ongoing professional development.

Determinants of effective capacity : Following are the significant determinants of effective capacity, which should be considered while planning the capacity:

User Account

All Pages