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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
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 cash return point? (Round your answer to 2 decimal places.) Multiple Choice $94,478.72 O $86,922.32 o $83,546.15 o o $69,400.00
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