Question
Watkins Resources faces a smooth annual demand for cash of $1.63 million, incurs transaction costs of $72 every time the firm sells marketable securities, and
Watkins Resources faces a smooth annual demand for cash of $1.63 million, incurs transaction costs of $72 every time the firm sells marketable securities, and can earn 3.4 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.)
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
9th Edition
9781119754053
