What will be optimal cash replenishment level

Assignment Help Financial Management

Reference no: EM131346889

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.)

Optimal cash $

Reference no: EM131346889

Questions Cloud

Describe the psychological theory : Your supervisor, Sarah Harris, is a new probation officer who has been on the job for only a few months and is still learning the job herself. You are asked to prepare a memo to Sarah Harris listing the five types of helping professionals that she..

How much net working capital does the firm need to fund : Dandee Lions, Inc., has a cash balance of $113,000, accounts payable of $228,000, inventory of $211,000, accounts receivable of $327,000, notes payable of $73,000, and accrued wages and taxes of $79,000. How much net working capital does the firm nee..

Explain differences between popular and scholarly sources : Explain at least five differences between popular and scholarly sources used in research. Explain at least five visual cues from the peer-reviewed, scholarly source that were not evident in the popular source.

What is its payables turnover : Assume a firm has a cash cycle of 64 days and an operating cycle of 97 days. What is its payables turnover?

What will be 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, and can earn 4.1 percent on its marketable securities. What will be its optimal cash replenishment..

What is its average payment period : Assume a firm has a cash cycle of 58 days and an operating cycle of 86 days. What is its average payment period?

What is the length of the days sales in inventory : Scribble, Inc. has sales of $84,000 and cost of goods sold of $68,000. The firm had a beginning inventory of $14,000 and an ending inventory of $16,000. What is the length of the days' sales in inventory?

How would you characterize indigenous peoples : How would you characterize indigenous peoples in California prior to Spanish exploration and colonization? What were the similarities and differences between the native people?

How the preferred manner of learning and knowing among women : Examine how the preferred manner of learning and knowing among women and students of color often influence their experiences in schools as the schools are currently structured.

User Account

All Pages