Problemveggie burgers inc would like to maintain their cash, Ask an Expert

Accounting

Problem:

Veggie Burgers, Inc., would like to maintain their cash account at a minimum level of $100,000; but expect the standard deviation in net daily cash flows to be $1,600; the effective annual rate on marketable securities to be 4.7 percent per year; and the trading cost per sale or purchase of marketable securities to be $55 per transaction.

Required:

Question: What will be their optimal cash return point?

Note: Please answer in proper manner and show all computations

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170149

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