The Smythe firm expects a total cash need of $9,000 over the next 4 months. They have a beginning cash balance of $1,000,and cash is replenished when it hits zero. The fixed cost of selling securities to replenish cash balances is $4.00. The interest rate on marketable securities is 8% per annum. There is a constant rate of cash disbursement and no cash receipts during the month. Based on the firm's current practice,how many times during the next 3 months will the cash balance be replenished?

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The Answer of The Smythe firm expects a total cash need of $9,000 over the next 4 months. They have a beginning cash balance of $1,000,and cash is replenished when it hits zero. The fixed cost of selling securities to replenish cash balances is $4.00. The interest rate on marketable securities is 8% per annum. There is a constant rate of cash disbursement and no cash receipts during the month. Based on the firm's current practice,how many times during the next 3 months will the cash balance be replenished?

The Smythe Firm Expects a Total Cash Need of $9,000