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Business, 11.10.2019 23:10 csciahetano

Med-supply has fixed cost associated with buying and selling marketable securities of $40. the interest rate currently earned on the marketable securities is 7% per annum. the daily rate is 7%/365 rounded to basis points is r* = 0 .0002 per day. the firm estimated the standard deviation of its net cash flows as $80 per day. management set a low limit on cash at $1,500. how much is the target cash balance?

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Med-supply has fixed cost associated with buying and selling marketable securities of $40. the inter...
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