Watkins Resources faces a smooth annual demand for cash of $1,500,000, incurs transaction costs of $75 every

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Watkins Resources faces a smooth annual demand for cash of $1,500,000, incurs transaction costs of $75 every time they sell marketable securities, and can earn 3.7 percent on their marketable securities. What will be their optimal cash replenishment level?


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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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