What will be their optimal upper cash limit

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Reference no: EM131321104

Hollywood Shoes would like to maintain their cash account at a minimum level of $69,000, but expect the standard deviation in net daily cash flows to be $5,900; 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 $290 per transaction. What will be their optimal upper cash limit? (Round your answer to the nearest dollar amount.)

Reference no: EM131321104

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