Veggie Burgers, Inc., would like to maintain its cash account at a minimum level of $246,400; but expect the standard deviation in net daily cash flows to be $13,600; the effective annual rate on marketable securities to be 4.8 percent per year; and the trading cost per sale or purchase of marketable securities to be $28 per transaction.
Required:
What will be its optimal cash return point? (
Icant find a complete formula anywhere
1 answer