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26. Your firm's management of its cash position is based on the Miller-Orr model. The weekely standard deviation of the disbursements is $8.600. The applicable

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26. Your firm's management of its cash position is based on the Miller-Orr model. The weekely standard deviation of the disbursements is $8.600. The applicable weekly interest rate is 0.054 percent and the fixed cost of transferring funds is $65. Suppose your firm's target cash balance, C -68,830 (6) What lower cash balance limit (L) is consistent with this information. (ii) Find U", the firm's implied maximum cash balance limit. 2 (ii) Find your firm's average cash balance held over time. (iv)Using your answer to part (ii),find the average dollar cost incurred by the firm from holding cash over a two-week period 26. Your firm's management of its cash position is based on the Miller-Orr model. The weekely standard deviation of the disbursements is $8.600. The applicable weekly interest rate is 0.054 percent and the fixed cost of transferring funds is $65. Suppose your firm's target cash balance, C -68,830 (6) What lower cash balance limit (L) is consistent with this information. (ii) Find U", the firm's implied maximum cash balance limit. 2 (ii) Find your firm's average cash balance held over time. (iv)Using your answer to part (ii),find the average dollar cost incurred by the firm from holding cash over a two-week period

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