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

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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