Happy Feet Would Like to Maintain Their Cash Account at a Minimum

question 122

Multiple Choice

Happy Feet would like to maintain their cash account at a minimum level of $75,000, but expects the standard deviation in net daily cash flows to be $5,000, the effective annual rate on marketable securities to be 7 percent per year, and the trading cost per sale or purchase of marketable securities to be $150 per transaction. What will be their optimal cash return point?

• A) $80,000.00
• B) $99,755.64
• C) $76,593.42
• D) $82,548.18

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Definitions:

Ethical Self-Governance

The personal commitment to behave according to one's own moral principles, often reflecting broader social or professional norms.

Socially Responsible Manner

Acting in ways that are not only profitable but also ethical, taking into account the effects on people, the community, and the environment.

Corporate Governance

The framework consisting of policies, practices, and procedures used to guide and manage a company, aiming to balance the needs of all its stakeholders.

CSR Strategies

Corporate Social Responsibility strategies involve plans and actions undertaken by a company to manage its impacts on society, the economy, and the environment in a responsible manner.