Question
Watkins Resources faces a smooth annual demand for cash of $1.57 million, incurs transaction costs of $82 every time the firm sells marketable securities, and
| Watkins Resources faces a smooth annual demand for cash of $1.57 million, incurs transaction costs of $82 every time the firm sells marketable securities, and can earn 4.4 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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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
