Assume that Everyman's Bookstore uses up cash at a steady rate of $200,000 per year. The interest

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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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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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Question Posted: Nov 14, 2017 02:34 AM

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Assume that Everyman's Bookstore uses up cash at a steady rate of $200,000 per year. The interest

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a Optimal initial cash balance from the Ba...View the full answer

Fundamentals of Corporate Finance

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