Lux Co. would like to maintain its cash account at a minimum level of P25,000, but expect the standard deviation in net daily cash flows to be P2,000; the effective annual rate on marketable securities to be 7.5% per year, and the trading cost per sale or purchase of marketable securities to be P200 per transaction. What will be their optimal upper cash limit
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Lux Co. would like to maintain its cash account at a minimum level of P25,000, but expect the standard deviation in net daily cash flows to be P2,000; the effective annual rate on marketable securities to be 7.5% per year, and the trading cost per sale or purchase of marketable securities to be P200 per transaction. What will be their optimal upper cash limit
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- National Co. would like to maintain its cash account at a minimum level of P25,000, but expect the standard deviation in net daily cash flows to be P2,000; the effective annual rate on marketable securities to be 7.5% per year, and the trading cost per sale or purchase of marketable securities to be P200 per transaction. What will be their optimal cash return point?Hollywood Shoes would like to maintain their cash account at a minimum level of $67,000, but expect the standard deviation in net daily cash flows to be $5,700; 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 $270 per transaction. What will be their optimal cash return point? (Round your answer to 2 decimal places.)Hollywood Shoes would like to maintain their cash account at a minimum level of $51,000, but expect the standard deviation in net daily cash flows to be $4,100; the effective annual rate on marketable securities to be 6.25 percent per year; and the trading cost per sale or purchase of marketable securities to be $110 per transaction. What will be their optimal upper cash limit? (Round your answer to the nearest dollar amount.) $55,100 $72,328.32 $111,859.83 $74,575.50
- Stellar Shoes would like to maintain their cash account at a minimum level of $25,000, but expects the standard deviation in net dally cash flows to be $2,000; the effective annual rate on marketable securities to be 5 percent per year, and the trading cost per sale or purchase of marketable securities to be $100 per transaction. What will be their optimal upper cash limit? Multiple Choice $114,277.02 $38,092.34 $27,000 $64,27702HotFoot Shoes would like to maintain its cash account at a minimum level of $33,000, but expects the standard deviation in net daily cash flows to be $4,800, the effective annual rate on marketable securities to be 7.3 percent per year, and the trading cost per sale or purchase of marketable securities to be $280 per transaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Optimal cash return point 60 $Hollywood Shoes would like to maintain their cash account at a minimum level of $64,000, but expect the standard deviation in net daily cash flows to be $5,400; the effective annual rate on marketable securities to be 7.00 percent per year, and the trading cost per sale or purchase of marketable securities to be $240 per transaction. What will be their optimal upper cash limit? Note: Round your answer to the nearest dollar amount. Multiple Choice $69,400 $83,546 $155.437 $86,922
- HotFoot Shoes would like to maintain its cash account at a minimum level of $42,000, but expects the standard deviation in net daily cash flows to be $5,700, the effective annual rate on marketable securities to be 5.8 percent per year, and the trading cost per sale or purchase of marketable securities to be $130 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.) Optimal cash return point $Veggie Burgers, Inc. would like to maintain its cash account at a minimum level of $257,000 but expects the standard deviation in net daily cash flows to be $13,200, the effective annual rate on marketable securities to be 4.5 percent per year, and the trading cost per sale or purchase of marketable securities to be $33.50 per transaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Optimal cash return pointHotFoot 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 $5,400, the effective annual rate on marketable securities to be 6.1 percent per year, and the trading cost per sale or purchase of marketable securities to be $160 per transaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
- mekmek Corporation uses the Baumol Cash Model to determine its optimal cash balance. For the coming year, the expected cash disbursement total to P432,000. The interest rate on marketable securities is P8 per transaction. Using 5% carrying cost rate, what is the optimal cash balance of the company? A. 1,175.76 B. 5,878.78 C. 11,757.55 D. 142,000Veggie Burgers, Inc. would like to maintain its cash account at a minimum level of $254,000 but expects the standard deviation in net daily cash flows to be $12,900, the effective annual rate on marketable securities to be 4.6 percent per year, and the trading cost per sale or purchase of marketable securities to be $32.00 per transaction. What will be its optimal upper cash limit? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)A firm needs a total P30 million in new cash for transaction purposes. The annual interest rate on marketable securities is 12% and the brokerage fee cost per transaction of selling securities to replenish cash is P1,000. Which of the following is closest to the firm’s optimal average cash balance?