Assume that Everyman's Bookstore uses up cash at a steady rate of $200,000 per year. The interest
Question:
Assume that Everyman's Bookstore uses up cash at a steady rate of $200,000 per year. The interest rate is 2% and each sale of securities costs $20.
a. How many times a year should the store sell securities?
b. What is its average cash balance?
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
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