Question
Rose Axels faces a smooth annual demand for cash of $5.12 million, incurs transaction costs of $273 every time the company sells marketable securities, and
| Rose Axels faces a smooth annual demand for cash of $5.12 million, incurs transaction costs of $273 every time the company sells marketable securities, and can earn 4.1 percent on its marketable securities. |
| What will be its optimal cash replenishment level? (Enter your answer in dollars not in millions. Round your answer to 2 decimal places.) |
| Optimal cash | $ |
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Mathematical Control Theory And Finance
Authors: Andrey Sarychev, Albert Shiryaev, Manuel Guerra, Maria Do Rosário Grossinho
2008th Edition
3540695311, 978-3540695318
