If Bulldog leaves its funds in marketable securities, it expects to earn approximately 0.50% per…

The Bulldog Company has cash needs of $5 million per month. If Bulldog needs more cash, it can sell marketable securities, incurring a fee of $300 for each transaction. If Bulldog leaves its funds in marketable securities, it expects to earn approximately 0.50% per month on their investment.

a. If Bulldog gets cash infusion of $1 million each time it needs cash, what are the holding costs associated with its cash investment?

b. If Bulldog gets cash infusion of $1 million each time it needs cash, what are the transactions costs per month associated its cash infusions?

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

c. Using the EOQ model, what level of cash infusion minimizes Bulldog's costs associated with cash?

 

Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Use Code FREE15