What will be their optimal cash return point

Assignment Help Finance Basics
Reference no: EM132354768

TSBT would like to maintain their cash account at a minimum level of $45,000, but expect the standard deviation in net daily cash flows to be $5,000; the effective annual rate on marketable securities to be 4.5 percent per year; and the trading cost per sale or purchase of marketable securities to be $50 per transaction. What will be their optimal cash return point?

Reference no: EM132354768

Questions Cloud

Estimated total costs for a production level : Use the high low method to find the estimated total costs for a production level of 32,000 unite?
What is kathy incremental profit : Kathy is trying to decide whether or not to attend college during the next 12 week session. She has the following options.
What is kevin production cost per door : In September, Kevin expects to produce 100,000 door stoppers. Assuming no structural changes, what is Kevin's production cost per door stopper for September?
What is the irr for project : What is the IRR for this project? What is the NPV of this project if the required return is 5 percent?
What will be their optimal cash return point : TSBT would like to maintain their cash account at a minimum level of $45,000, but expect the standard deviation in net daily cash flows to be $5,000
How to calculate this without using a financial calculator : Rylan's equity cost of capital is 14%, what price would you expect Rylan's stock to sell for at the end of the four years?
What is the npv of investment : If the appropriate discount rate is 12%, what is the NPV of this investment? Explain the findings.
Ethical issues within government and nonprofit organizations : You employed ethical decision making in order to recommend solutions to ethical issues within government and nonprofit organizations
Unused portion of the credit line : Interest on the borrowed amount is 10% per year. You must maintain a 15% compensating balance on outstanding loans and pay a commitment fee

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the required rate of return on stock

What is the required rate of return on this stock? That is, solve for r.

  Expected to grow at a constant rate

Stock Values The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely.

  Calculate the firm debt-to-equity ratio

Calculate the firm's debt-to-equity ratio.(Round net income and net sales to the nearest whole dollar, e.g. 25 and round debt to equity ratio to 1 decimal place, e.g. 15.2%.)

  Calculate the market value of bond

Calculate the market value of this bond if investors are expecting a yield of 3% per year.

  Determine the value of these bonds

The State of Adaven issued $50 million of perpetual bonds in 1990. The bonds were issued in $1000 denominations with an annual coupon interest rate of 5%. Determine the value of these bonds today to an investor who requires a 10% return on his inv..

  Determine pre-acquisition balance sheets of push way

On July 1, 2014, Push way Corporation issued 100,000 shares of common stock in exchange for all of Stroker Company's common stock.

  How the critical success factors apply to the facts of case

Analyze how the Critical Success Factors apply to the facts of the case study. Provide examples to support your analysis. Determine the project benefits, organizational readiness, and risk culture of the company in the case study.

  Describe the acquisition strategy of worldcom

Describe the acquisition strategy of WorldCom. What went wrong? what could have been changed to make it work give me detailed answer.

  Calculate standard deviation of stock

You own a portfolio of two stock X and stock Y with 40 percent of the portfolio invested in Stock X. You have observed over many years that the variance of your portfolio value is 0.0144

  What is joint probability distribution for saving per year

what is the joint probability distribution for saving per year and useful life?

  Calculate the average days in inventory for each company

Lewis Incorporated and Clark Enterprises report the following amounts for 2012.

  How much you would have to deposit each year

Develop stock investment portfolio: Select five key stocks and determine their expected return from finance.yahoo.com. Presume you would invest 20% equally in these stocks and average the return.

Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd