What will be their optimal upper cash limit

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Reference no: EM131875915

Hollywood Shoes would like to maintain their cash account at a minimum level of $62,000, but expect the standard deviation in net daily cash flows to be $5,200; the effective annual rate on marketable securities to be 6.50 percent per year; and the trading cost per sale or purchase of marketable securities to be $220 per transaction. What will be their optimal upper cash limit? (Round your answer to the nearest dollar amount.)

Reference no: EM131875915

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