Barenbaum industries projects that cash outlays of $5.4 million will occur uniformly throughout the year. barenbaum plans to meet its cash requirements by periodically selling marketable securities form its portfolio. the firm’s marketable securities are invested to earn 6%, and the cost per transaction of converting securities to cash is $15.a. use the baumol model to determine the optimal transaction size for transfers from marketable securities to cash. b. what will be barenbaum’s average cash balance? c. how many transfers per year will be required? d. what will be barenbaum’s total annual cost of maintaining cash balances? what would the total cost be if the company maintained an average cash balance of $40,000 or of $0 (it deposits funds daily to meet cash requirements, using 360 days)?

5. profit maximization and shutting down in the short run suppose that the market for polos is a competitive market. the following graph shows the daily cost curves of a firm operating in this market. 0 2 4 6 8 10 12 14 16 18 20 50 45 40 35 30 25 20 15 10 5 0 price (dollars per polo) quantity (thousands of polos) mc atc avc for each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. assume that if the firm is indifferent between producing and shutting down, it will produce. (hint: you can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) price quantity total revenue fixed cost variable cost profit (dollars per polo) (polos) (dollars) (dollars) (dollars) (dollars) 12.50 135,000 27.50 135,000 45.00 135,000 if the firm shuts down, it must incur its fixed costs (fc) in the short run. in this case, the firm's fixed cost is $135,000 per day. in other words, if it shuts down, the firm would suffer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). this firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is per polo.

The returns on the common stock of maynard cosmetic specialties are quite cyclical. in a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. the probability of a recession is 35 percent while the probability of a boom is 10 percent. what is the standard deviation of the returns on this stock?

Based on what you learned about time management which of these statements are true