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What is the optimal transaction size of securities

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Problem 1: A firm has estimated that it will need $3,000,000 net cash during the year. Current interest rate on money market securities is 6 percent per year and the cost of buying and selling securities cost $50 per transaction. What is the optimal transaction size of securities?

A) $70,710.68
B) $25,100.00
C) $65,285.21
D) $92,511.11

Reference no: EM132965232

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