Question
Watkins Resources faces a smooth annual demand for cash of $1.65 million, incurs transaction costs of $70 every time the firm sells marketable securities, and
| Watkins Resources faces a smooth annual demand for cash of $1.65 million, incurs transaction costs of $70 every time the firm sells marketable securities, and can earn 3.2 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.) |
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Millon Cornett
9th edition
1259717771, 1259717772, 9781260048186, 1260048187, 978-1259717772
