The trading cost per sale or purchase of marketable


HotFoot Shoes would like to maintain its cash account at a minimum level of $35,000, but expects the standard deviation in net daily cash flows to be $5,000, the effective annual rate on marketable securities to be 7.5 percent per year, and the trading cost per sale or purchase of marketable securities to be $300 per transaction. What will be its optimal cash return point?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The trading cost per sale or purchase of marketable
Reference No:- TGS02822350

Expected delivery within 24 Hours