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The above respectable company has set a minimum balance of $1,000. The daily variance of cash...

  1. The above respectable company has set a minimum balance of $1,000. The daily variance of cash flows is $1 million, the transaction cost of adjusting the cash balance is $1,000, and the interest rate is 15 percent. Use the Miller and Orr model to find the target cash balance and the upper cash balance.
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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

AS NOTHING WAS MENTIONED, 360 DAYS ASSUMED, ANY CHANGE, LET ME KNOW, WILL CALCULATE ACCORDINGLY

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