What will be optimal cash return point

Assignment Help Financial Management
Reference no: EM131980767

Veggie Burgers, Inc., would like to maintain its cash account at a minimum level of $253,000 but expects the standard deviation in net daily cash flows to be $12,800, the effective annual rate on marketable securities to be 5.5 percent per year, and the trading cost per sale or purchase of marketable securities to be $31.50 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: EM131980767

Questions Cloud

Make all the necessary journal entries : MAKE ALL THE NECESSARY JOURNAL ENTRIES FOR USA COMPANY IN 2016 AND 2017.
Free cash flows for the purpose of capital budgeting : Boiger, Inc, a manufacturing company in Harvey, What are its free cash flows for the purpose of capital budgeting?
What value would you assign to this bond : The required return on this bond is 9 percent. What value would you assign to this bond?
Calculate the equivalent annual cash flows project : Calculate the equivalent annual cash flows the project must earn to equal the aftertax salvage value.
What will be optimal cash return point : The trading cost per sale or purchase of marketable securities to be $31.50 per transaction. What will be its optimal cash return point?
What is net present value of the loan : What is the net present value of the loan to TTC if the firm’s tax rate is 34 percent and it accepts the county’s offer?
What is the equipment after-tax salvage value : Karsted can sell the used equipment today for $8.75 million, and its tax rate is 30%. What is the equipment's after-tax salvage value?
What is company float and maximum daily charge : What is the company's float? What is the highest daily fee the company should be willing to pay to eliminate its float entirely?
What does the term sunk cost refer : What does the term "sunk cost" refer to and how would it affect a replacement decision?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd