1 Minimum Cash Balance Of Br 10 000 The Cost That Converts Marketable Securities Mss 2840306

1. minimum cash balance of Br.10, 000. The cost that converts marketable securities (MSs) to cash is Br.30; the firm’s marketable securities portfolio earns and 12%annual return. The standard division of ADRs daily net cash flows is estimated to be Br.150.

Required: Compute

A. The distance b/n the upper and the lower limits(Z)

B. The upper limit

The average cash balance and the target cash balance