Veggie Burgers, Inc., would like to maintain its cash account at a minimum level of $252,000 but expects the standard deviation in net daily cash flows to be $12,700, the effective annual rate on marketable securities to be 5.4 percent per year, and the trading cost per sale or purchase of marketable securities to be $31.00 per transaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places.) Optimal cash return point 50

Veggie Burgers, Inc., would like to maintain its cash account at a minimum level of $252,000 but expects the standard deviation in net daily cash flows to be $12,700, the effective annual rate on marketable securities to be 5.4 percent per year, and the trading cost per sale or purchase of marketable securities to be $31.00 per transaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places.) Optimal cash return point 50

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter23: Other Topics In Working Capital Management

Section: Chapter Questions

Problem 11MC

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