What will be their optimal cash return point

Assignment Help Financial Management

Reference no: EM131850153

Hollywood Shoes would like to maintain their cash account at a minimum level of $66,000, but expect the standard deviation in net daily cash flows to be $5,600; the effective annual rate on marketable securities to be 6.25 percent per year; and the trading cost per sale or purchase of marketable securities to be $260 per transaction. What will be their optimal cash return point? (Round your answer to 2 decimal places.)

A) $71,600.00

B) $99,266.40

C) $86,614.44

D) $90,299.40

2. Scribble, Inc. has sales of $88,000 and cost of goods sold of $72,000. The firm had a beginning inventory of $18,000 and an ending inventory of $20,000. What is the length of the days' sales in inventory? (Round your answer to 2 decimal places.)

A) 101.39 days

B) 91.25 days

C) 82.95 days

D) 74.66 days

Reference no: EM131850153

Questions Cloud

Corazon would capitalize the asset on its books : Corazon Company purchased an asset with a list price of $14,000. Corazon would capitalize the asset on its books at $14,000. $14,660. $15,160. $14,800.

All yield measures are stated as annual percentage rates : All bonds are semi-annual. All yield measures are stated as annual percentage rates.

If the yield to maturity remains at its current rate : A 15-year, $1,000 par value bond has a 7% annual coupon. If the yield to maturity remains at its current rate, what will the price be 4 years from now?

Tolerable in start of exploitation and start of oil delivery : At a real discount rate of 5%/yr what is the longest delay tolerable between the start of exploitation and the start of oil delivery:

What will be their optimal cash return point : The trading cost per sale or purchase of marketable securities to be $260 per transaction. What will be their optimal cash return point?

Compute the present value and yield to call : Compute the present value of a $2,000 deposit in year 1 and another $2,500 deposit at the end of year 4 using an 8 percent interest rate.

Define municipal bond-explain what general obligation bond : Define a municipal bond and explain what a general obligation bond is as opposed to a revenue bond.

What is the present value of an investment : What is the present value of an investment that pays $400 at the end of three years and $700 at the end of 10 years if the discount rate is 5 %?

Prior claim on the cash flows of corporation : Which investors have the prior claim on the cash flows of a corporation?

User Account

All Pages