Watkins Resources faces a smooth annual demand for cash of $1,500,000, incurs transaction costs of $75 every
Question:
Watkins Resources faces a smooth annual demand for cash of $1,500,000, incurs transaction costs of $75 every time they sell marketable securities, and can earn 3.7 percent on their marketable securities. What will be their optimal cash replenishment level?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 82% (29 reviews)
The optimal cas...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Question Posted:
Students also viewed these Finance questions
-
Rose Axels faces a smooth annual demand for cash of $5,000,000, incurs transaction costs of $275 every time they sell marketable securities, and can earn 4.3 percent on their marketable securities....
-
A Clarke Corporation subsidiary buys marketable equity securities and inventory on April 1,2013,: for 100,000 pesos each. It pays for both items on June 1, 2013, and they are still on hand at...
-
A Clarke Corporation subsidiary buys marketable equity securities and inventory on April 1. 2015. for 100.000 pesos each ft pays for both item on June 1.2025. and they e still on hand at year- end....
-
Two long wires are placed in the x-y plane, as shown in the figure. Each wire carries a current of 1.5 A, directed out of the page. If the distance d = 3.0 m, what is the net magnetic field due to...
-
Crazy Dave has expanded his analysis, presented in Problem 14.73 on page 619, of which variables are important in predicting a team's wins in a given baseball season. He has collected data in related...
-
The figure shows the level curves for an unknown function (x, y). What, if any, information can be given about at the points A, B, C, and D? Explain your reasoning. y B A H X
-
The number of ways 2 captains can be chosen from 28 players on a lacrosse team
-
Kite Corporation, a merchandiser, recently completed its calendar-year 2011 operations. For the year, (1) All sales are credit sales, (2) All credits to Accounts Receivable reflect cash receipts from...
-
Sales Mix and Break-Even Sales Dragon Sports Inc, manufactures and sells two products, baseball bats and baseball gloves. The red costs are $548,800, and the sales mix is 40% bats and 60% gloves. The...
-
Zek Ltd assembles heavy industrial switchboxes. Hitherto, Zek Ltd has assembled only one type, but recently a decision was made to expand the product range into two types. The following data pertains...
-
Suppose your firm is seeking a four-year, amortizing $200,000 loan with annual payments and your bank is offering you the choice between a $205,000 loan with a $5,000 compensating balance and a...
-
HotFoot Shoes would like to maintain their cash account at a minimum level of $25,000, but expect the standard deviation in net daily cash flows to be $4,000, the effective annual rate on marketable...
-
Ethyl triflate is much more reactive than ethyl mesylate toward nucleophiles in SN2 reactions. (a) Give the structures of all of the products formed when each compound reacts with potassium iodide in...
-
21. How a degradation process is modeled? 22.Give the homogenity property in Linear Operator 23. Give the relation for degradation model for continuous function 24.which is called the superposition...
-
28. Define Gray-level interpolation 29. What is meant by Noise probability density function? 30. Why the restoration is called as unconstrained restoration? 31. Which is the most frequent method to...
-
34. Give the relation for guassian noise 35. Give the relation for rayleigh noise 36. Give the relation for Gamma noise 37. Give the relation for Exponential noise 38. Give the relation for Uniform...
-
41. What is pseudo inverse filter? 42. What is meant by least mean square filter? 43. Give the difference between Enhancement and Restoration PART-B 1. Discuss different mean filters
-
1.Discuss different mean filters 2. Draw the degradation model and explain. 3.Write short notes on Median Filters
-
Ridder Manufacturing Company manufactures a variety of garden and lawn Prepare responsibility report equipment. The company operates through three divisions. Each division is an invest- for an...
-
For all of the following words, if you move the first letter to the end of the word, and then spell the result backwards, you will get the original word: banana dresser grammar potato revive uneven...
-
Define interpersonal communication.
-
Using the CAPM, show that the ratio of the risk premiums on two assets is equal to the ratio of their betas.
-
Suppose you observe the following situation: Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-freerate? Security Oxy Co....
-
Show that another way to calculate beta is to take the covariance between the security and the market and divide by the variance of the markets return.
-
Management makes many judgements and estimates in preparing accounts, some of which will have a significant effect on the reported results and financial position. Give examples of ZAIN estimates and...
-
What is the NPV of a project with an initial investment of $350,000 and annual cash inflows of $150,000 for the next 10 years? Cost of capital is 13% A $436,721.21 B $442,901.59 C $452,932.43 D...
-
Journal DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Joumalize the entries for the following transactions. Refer to the Chart of Accounts for exact wording of...
Study smarter with the SolutionInn App