Question
Watkins Resources faces a smooth annual demand for cash of $1.61 million, incurs transaction costs of $74 every time the firm sells marketable securities, and
Watkins Resources faces a smooth annual demand for cash of $1.61 million, incurs transaction costs of $74 every time the firm sells marketable securities, and can earn 3.6 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.) |
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Contemporary Financial Management
Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan
8th Edition
0324065914, 9780324065916
