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both please *Bean Counter Accountants needs a total of $25,000 in cash during the year for transactions and other purposes. Whenever cash runs low, it
both please
*Bean Counter Accountants needs a total of $25,000 in cash during the year for transactions and other purposes. Whenever cash runs low, it sells $2,500 in securities and transfers cash. The interest rate is 5 percent per year and selling securities costs $20 per sale. What is the Total Cost under the current policy, and what is the Target Cash Balance derived using the BAT Model? *Barnacle Bill's Bait Bonanza has a fixed cost of \$28 associated with buying and selling marketable securities. The interest rate is currently .017 percent per day, and the firm has estimated that the standard deviation of its daily net cash flows is $95. Management has set a lower limit on $1,750 on cash holdings. Calculate the Target Cash Balance and Upper Limit using the Miller-Orr Model Step by Step Solution
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