(Answered) Question hotfoot shoes would like to maintain its cash

Finance

Question: 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 $3,400, 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 $340 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).

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