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Hollywood Shoes would like to maintain their cash account at a minimum level of $68,000, but expect the standard deviation in net daily cash flows
Hollywood Shoes would like to maintain their cash account at a minimum level of $68,000, but expect the standard deviation in net daily cash flows to be $5,800; the effective annual rate on marketable securities to be 6.75 percent per year; and the trading cost per sale or purchase of marketable securities to be $280 per transaction. What will be their optimal upper cash limit? (Round your answer to the nearest dollar amount.) Multiple Choice 0 $73,800 0 $87,475.01 0 $170,145.02 0 $91,246.59
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