28.6 The variance of the daily net cash flows for the Tseneg Asian Import Company is $1.44...
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28.6 The variance of the daily net cash flows for the Tseneg Asian Import Company is $1.44 million. The opportunity cost to the firm of holding cash is 8 percent per year. The fixed cost of buying and selling securities is $600 per transaction.
What should the target cash level and upper limit be, if the tolerable lower limit has been established at $20,000?
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Related Book For
Corporate Finance
ISBN: 9780071229036
6th International Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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