Question
Watkins Resources faces a smooth annual demand for cash of $1.59 million, incurs transaction costs of $84 every time the firm sells marketable securities, and
Watkins Resources faces a smooth annual demand for cash of $1.59 million, incurs transaction costs of $84 every time the firm sells marketable securities, and can earn 4.6 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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Managing The Audit Function A Corporate Audit Department Procedures Guide
Authors: Michael P. Cangemi
2nd Edition
0471012556, 978-0471012559
