How much cash should raise from selling securities


Response to the following problem:

Buccaneer, Inc., has determined that it needs $10 million in cash per week. If Buccaneer needs additional cash, it can sell marketable securities, incurring a fee of $100 for each transaction. If Buccaneer leaves funds in its marketable securities, it expects to earn approximately 0.2% per week on their investment.

Using the economic order quantity model, how much cash should Buccaneer raise from selling securities each week to minimize its costs of cash?

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Financial Accounting: How much cash should raise from selling securities
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