48. Assume that short-term investment securities are yielding 5 percent, and it costs a firm $20 each time it buys or sells investment securities. The variance of the firms daily net cash flows has been found to be $20,000. Management wants to keep at least $1,000 in the cash account for emergencies. Given these conditions, what is the upper limit?

a.

$4,345

b.

$4,978

c.

$4,348

d.

$4,897

8. The Main Advantages of an Initial Public Offering (IPO).

a.

Not important to companies growth

b.

Does not increase capitalization for the issuing business

c.

Capital inflow will not furnish the IPO resources

d.

Business will have access to the market