What will be optimal cash return point

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Reference no: EM131358504

HotFoot Shoes would like to maintain its cash account at a minimum level of $28,000, but expects the standard deviation in net daily cash flows to be $4,300, the effective annual rate on marketable securities to be 6.8 percent per year, and the trading cost per sale or purchase of marketable securities to be $230 per transaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places.)

Reference no: EM131358504

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