Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Veggie Burgers, inc would like to maintain its cash account at a minimum level of $259,000 but expects the standard devation in net daily cash

image text in transcribed
Veggie Burgers, inc would like to maintain its cash account at a minimum level of $259,000 but expects the standard devation in net daily cash flows to be $13,400 the effective annual rate on marketable securities to be 43 percent per year, and the trading cost per sale or purchase of marketable securties to be $34.50 per transaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations, Round your onswer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management

Authors: P V V Satyanarayana

1st Edition

9350568012, 9789350568019

More Books

Students also viewed these Finance questions

Question

Was it ethical to deny treatment to the control group?

Answered: 1 week ago

Question

Define self-esteem and discuss its impact on your life.

Answered: 1 week ago