Lisa Tylor, CFO of Purple Rain Co., concluded from the Baumol model that the optimal cash balance

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Lisa Tylor, CFO of Purple Rain Co., concluded from the Baumol model that the optimal cash balance for the firm is \($20\) million. The annual interest rate on marketable securities is 7.5 percent. The fixed cost of selling securities to replenish cash is \($5,000.\) Purple Rain’s cash flow pattern is well approximated by the Baumol model. What can you infer about Purple Rain’s average weekly cash disbursement?

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