Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Watkins Resources faces a smooth annual demand for cash of $1.52 million, incurs transaction costs of $77 every time the firm sells marketable securities, and
Watkins Resources faces a smooth annual demand for cash of $1.52 million, incurs transaction costs of $77 every time the firm sells marketable securities, and can earn 3.9 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 $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started