What will be their optimal cash return point

Assignment Help Finance Basics
Reference no: EM132480947

Hollywood Shoes would like to maintain their cash account at a minimum level of $64,000, but expect the standard deviation in net daily cash flows to be $5,400; the effective annual rate on marketable securities to be 7.00 percent per year; and the trading cost per sale or purchase of marketable securities to be $240 per transaction. What will be their optimal cash return point? (Round your answer to 2 decimal places.)

Reference no: EM132480947

Questions Cloud

Determine how much money firm receive from selling land : How much money must the firm receive from selling the land and building to ensure that Carvil receives a portion? (Do not round intermediate calculations.)
Discussion about the company privacy policy : For this assignment, you are asked to locate any company privacy policy. Some of the more popular ones might include GOOGLE, APPLE, or MICROSOFT.
Required projects with the cash flows : Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both
Determine the balances : Post the July journal entries into your general ledger accounts. Include the date next to each number posted. Determine the balances.
What will be their optimal cash return point : What will be their optimal cash return point? (Round your answer to 2 decimal places.)
Change to capital structure : Suppose that a company's equity is currently selling for $27.25 per share and that there are 4.3 million shares outstanding and 23 thousand bonds outstanding
Calculation of number of shares : The firm is considering switching to a 15-percent debt capital structure, and has determined that they would have to pay a 11 percent yield on perpetual debt
How information security policy and sec sdlc is used : Discuss how information security policy and Sec SDLC is used in your organization, how it works or doesn't work in your environment.
How amount of bond liability removed from the accounts : Carrying amount of the bond was less than the call price. The amount of bond liability removed from the accounts in 2021 should have equaled the

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the concept of operating leverage

What is the difference between scenario analysis and sensitivity analysis? How might you use each during the capital budgeting process?

  Calculate the current price of the stock

company x is expected to pay an year-end dividend of $8 a share on its common stock. after the dividend payment the stock is expected to sell at $100 per share. the required rate of return on the common stock is 20%. then, calculate the current pr..

  Triplin corporations marginal tax rate is 35 it can issue

triplin corporations marginal tax rate is 35. it can issue 10-year bonds with an annual coupon rate of 7 and a par

  How much would you have in 15yrs

If you can earn 8% each year,how much would you have to save each year if you want to retire in 35yrs with $2million?

  What is the amount of the current assets

A firm in inventory, $1,8600 in fixed assets in accounts receivable, $210 in accounts  payable, and $70 in cash. What is the amount of the current assets?

  Confidence interval for the population proportion

In a survey of 2695 adults, 1479 say they have started paying bills online in the last year. Construct a 99% confidence interval for the population proportion. Interpret the results.

  How can gross interest income rise

How can gross interest income rise while the net interest margin remains somewhat stable for a particular bank and Bank Leverage. What does the assets/equity ratio of a bank indicate?

  Explain the annuity puzzle

Until recently, there has been little behavioral research related to the distribution phase of retirement, and specifically annuities. Discuss some possible.

  Annual carrying costs of cheese inventory

Cheeseburger and Taco Company purchases 7,199 boxes of cheese each year. It costs $10 to place and ship each order and $5.12 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

  Compute and analyze key financial measures and ratios

MSFIM 638 Financial Analysis & Valuation - Lyons Case Studies Assignment - Compute and analyze key financial measures and ratios

  Pair each item from list a with the item from list b

Listed below are several terms and phrases associated with operational assets. Pair each item from List A (by letter) with the item from List B.

  What would be the maximum amount of checkable deposits

the simplex financial system is characterized by a required reserves ratio of 11 percent initial excess reserves are 1

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