Question: can you please explain the steps ! Happy Feet would like to maintain their cash account at a minimum level of $75,000, but expects the

can you please explain the steps !

Happy Feet would like to maintain their cash account at a minimum level of $75,000, but expects the standard deviation in net daily cash flows to be $5,000; the effective annual rate on marketable securities to be 7 percent per year; and the trading cost per sale or purchase of marketable securities to be $150 per transaction. What will be their optimal upper cash limit? $80,000.00 $99,755.64 $149,266.92 $76.593.42

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

In 2010, there were 232.2 million cell phone subscribers in the United States. By 2020, the number of subscribers increased to 276.7 million. a. What is the geometric mean annual percent increase for...

Happy Feet would like to maintain their cash account at a minimum level of $75,000, but expects the standard deviation in net daily cash flows to be $5,000; the effective annual rate on marketable...

Question 15 (Mandatory) (3 points) Happy Feet would like to maintain their cash account at a minimum level of $75,000, but expects the standard deviation in net daily cash flows to be $5,000; the...

Could someone please help me with these 10 questions?? Thank you!!!!! 1. Veggie Burgers, Inc., would like to maintain its cash account at a minimum level of $250,000 but expects the standard...

Problem 14-21 Optimal Cash Return Point (LG14-8) HotFoot Shoes would like to maintain its cash account at a minimum level of $35,000, but expects the standard deviation in net daily cash flows to be...

Please see the attached document, it has 5 questions about Finance. 1. Veggie Burgers, Inc., would like to maintain its cash account at a minimum level of $261,000 but expects the standard deviation...

HotFoot Shoes would like to maintain its cash account at a minimum level of $31,000 but expects the standard deviation in net daily cash flows to be $2,600, the effective annual rate on marketable...

HotFoot Shoes would like to maintain its cash account at a minimum level of $25,000 but expects the standard deviation in net daily cash flows to be $2,000, the effective annual rate on marketable...

I need help with the following questions so I have attached the file Suppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the year just ended were $4.4...

I need help with these questions if you can show work that would be great. I tried doing them myself and i believe the work was correct but i keep getting the wrong answer when i fill it into the...

Marketing Philosophies?

Write a function that reads a Mathematical expression from a text file and verifies the validity of paranthesis in the expression using a Stack.

You now have a good bottom - up cost estimate for labor, materials, and other expenses. Ralph and Marie must work with their bank and parents to ensure funds are available when needed to cover the...

On 30 June 2019, Steve Ltd acquired a machine for $200 500 cash, with an expected useful life of ten years and a zero residual value. The company has adopted fair value for the valuation of...