Question
Rose Resources faces a smooth annual demand for cash of $10.5 million; incurs transaction costs of $350 every time they sell marketable securities, and can
Rose Resources faces a smooth annual demand for cash of $10.5 million; incurs transaction costs of $350 every time they sell marketable securities, and can earn 4.4 percent on their marketable securities. What will be their optimal cash replenishment level? (Round your answer to 2 decimal places.)
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The Economics Of Money Banking And Finance
Authors: Peter Howells, Keith Bain
4th Edition
0273710397, 978-0273710394
