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Hollywood Shoes would like to maintain their cash account at a minimum level of $52,000, but...

Hollywood Shoes would like to maintain their cash account at a minimum level of $52,000, but expect the standard deviation in net daily cash flows to be $4,200; 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 $120 per transaction. What will be their optimal upper cash limit? (Round your answer to the nearest dollar amount.)

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
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