Problem:
HotFoot Shoes would like to maintain their cash account at a minimum level of $31,000, but expect the standard deviation in net daily cash flows to be $2,000; the effective annual rate on marketable securities to be 5 percent per year; and the trading cost per sale or purchase of marketable securities to be $180 per transaction.
Required:
Question: What will be their optimal cash return point?
Note: Please show guided help with steps and answer.