For Leo, Inc. and according to the Baumol model, what is the optimal transaction size for transfers from marketable securities if the total cash needed for transactions annually is $7,569,000 and the company can hold marketable securities that yield 10 percent, and then convert these securities to cash at a cost of only $50 per transaction.
| A. |
$7,071
|
| B. |
$38,357
|
| C. |
$70,711
|
| D. |
$102,956
|
| E. |
$87,000
|