What will be optimal cash return point

Assignment Help Financial Management

Reference no: EM131926463

HotFoot Shoes would like to maintain its cash account at a minimum level of $39,000, but expects the standard deviation in net daily cash flows to be $5,400, the effective annual rate on marketable securities to be 6.1 percent per year, and the trading cost per sale or purchase of marketable securities to be $160 per transaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131926463

Questions Cloud

Position of an element on the periodic table : What are valence electrons? How do the number of valence electrons control the position of an element on the periodic table?

Where do you like most companies fail in the execution : It is important for a firm to understand the different strategy's that have for the various activities involved in the business.

How much do you need to save each year : In 30 years, you plan to set up a fellowship fund that pays out 100,000 per year in perpetuity with an annually compounded discount rate of 5%.

What is the force constant of spring : a) What is the force constant (in N/m) of this spring?

What will be optimal cash return point : HotFoot Shoes would like to maintain its cash account at a minimum level of $39,000, What will be its optimal cash return point?

What is the monthly interest rate : Mary Jo wants to buy a boat that is available at two dealerships in town. The price of the boat is the same at both dealerships.

What are the appropriate risk-adjusted discount rates : Would a fast-food restaurant chain, such as McDonald's, incur more risk by offering a new sandwich or opening a new store? Why?

Find the acceleration once the box has begun to move : Find the acceleration once the box has begun to move. c) At this angle, how fast will the box be moving after it has slid 5.0 m along the loading ramp.

Describe what is the disbursement in brief : You have $35,800 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $4,300 and then deposit a check for $6,700.

User Account

All Pages