What will be their optimal upper cash limit

Assignment Help Financial Management

Reference no: EM131852409

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 upper cash limit? (Round your answer to the nearest dollar amount.)

Reference no: EM131852409

Questions Cloud

Represent the amount of money in the wallets : Suppose that X and Y represent the amount of money in the wallets of players A and B, respectively. Let X and Y be jointly uniformly distributed

Describe your initial thoughts on employee engagement : Describe your initial thoughts on employee engagement after watching the video? i.e., were you aware of engagement, what do you think about engagement now.

Find the expected value of the time linda : Find the expected value of the time Linda has to wait before she can cross the street.

Debate about the responsibility of wealthy nations : There is ongoing debate about the responsibility of wealthy nations to remedy social injustice around the globe.

What will be their optimal upper cash limit : Hollywood Shoes would like to maintain their cash account at a minimum level of $64,000, What will be their optimal upper cash limit?

Each time that steven calls his friend adam : Each time that Steven calls his friend Adam, the probability that Adam is available to talk with him is p independently of other calls

How to play backgammon : Recently, Larry taught his daughter Emily how to play backgammon. To encourage Emily to practice this game, Larry decides to play with her until

What price should annual payment bond sell : Neither bond is callable. At what price should the annual payment bond sell?

What is the overall message that sensitive guys wants : What is the overall message that Sensitive Guys wants the audience to leave with? Describe at least 2 moments, scenes or elements.

User Account

All Pages