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.) |
| Optimal cash | $ |
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Bond Markets Analysis And Strategies
Authors: Frank J Fabozzi
8th Edition
013274354X, 9780132743549
