Veggie Burgers, Inc., would like to maintain its cash account at a minimum level of $261,000
Veggie Burgers, Inc., would like to maintain its cash account at a minimum level of $261,000 but expects the standard deviation in net daily cash flows to be $13,600, the effective annual rate on marketable securities to be 3.1 percent per year, and the trading cost per sale or purchase of marketable securities to be $35.50 per transaction.
Rose Axels faces a smooth annual demand for cash of $5.19 million, incurs transaction costs of $266 every time the company sells marketable securities, and can earn 3.4 percent on its marketable securities.
HotFoot Shoes would like to maintain its cash account at a minimum level of $43,000 but expects the standard deviation in net daily cash flows to be $3,800, the effective annual rate on marketable securities to be 2.7 percent per year, and the trading cost per sale or purchase of marketable securities to be $380 per
transaction.
What will be its optimal upper cash limit? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places.)
Optimal upper cash limit
$
What will be its optimal cash replenishment level? (Enter your answer in dollars not in millions. Round your answer to 2 decimal places.)
Optimal cash
$
What will be its optimal upper cash limit? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.)
Optimal upper cash limit
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