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HotFoot Shoes would like to maintain its cash account at a minimum level of $25,000 but expects the standard deviation in net daily cash flows

HotFoot Shoes would like to maintain its cash account at a minimum level of $25,000 but expects the standard deviation in net daily cash flows to be $2,000, the effective annual rate on marketable securities to be 3.5 percent per year, and the trading cost per sale or purchase of marketable securities to be $200 per transaction
what will be its optimal upper cash limit? (use 365 days a year. Do not round intermediate calculations. Round your answer to two decimal places)
please show how to do on calculator as well
image text in transcribed
HotFoot Shoes would like to maintain its cash account at a minimum level of $25,000 but expects the standard deviation in net daily cash flows to be $2,000, the effective annual rate on marketable securities to be 3.5 percent per year, and the trading cost per sale or purchase of marketable securities to be $200 per transaction What will be its optimal upper cash limit? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Optimal upper cash limit

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