Solved: What will be its optimal cash replenishment, Business Management

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What will be its optimal cash replenishment

Rose Axels faces a smooth annual demand for cash of $5.15 million, incurs transaction costs of $270 every time the company sells marketable securities, and can earn 3.8 percent on its marketable securities.

What will be its optimal cash replenishment level?

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Business Management: What will be its optimal cash replenishment

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