Veggie Burgers Inc would like to maintain their cash account
Veggie Burgers, Inc., would like to maintain their cash account at a minimum level of $245,000, but expect the standard deviation in net daily cash flows to be $12,000, the effective annual rate on marketable securities to be 4.7 percent per year, and the trading cost per sale or purchase of marketable securities to be $27.50 per transaction. What will be their optimal cash return point?

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help