CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services, as well as transports intermodal containers and trailers. It transports chemicals, automotive, agricultural and food products, minerals, fertilizers, forest products, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants. CSX is an older firm, therefore, it is able to forecast its cash needs with certainty. Assume that CSX incurs $12.37 in transaction costs, has annual opportunity costs of 6.5%, and requires $10M in cash throughout the year. CSX uses the Baumol model. Required: a. What is the size of its optimal securities trade (i.e. optimal cash balance)? b. Compute the holding costs and transaction costs? c. Compute average inventory? d. Compute the number of times securities will be sold?