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43 The Smythe firm expects a total cash need of $9,000 over the next 4 months. They have a beginrung cash balance of $1000, and
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The Smythe firm expects a total cash need of $9,000 over the next 4 months. They have a beginrung cash balance of $1000, and ca replereshed when it has zero The fixed cost of selling securities to replenish cash balances is $4.00 The interest rate on marketable securities is 8% per annum There is a constant rate of cash desbursement and no cash receipts during the month Based on the funn current practice, what is the average daily cash balance (a month has 30 days?
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