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Five Below, Inc. operates as a specialty value retailer in the United States. It offers accessories, including novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories,

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Five Below, Inc. operates as a specialty value retailer in the United States. It offers accessories, including novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, athletic tops and bottoms, and T-shirts, as well as nail polishes, lip glosses, fragrances, and branded cosmetics, and items used to complete and personalize living space as well as provides storage options for the customers room. Assume that it costs Five Below $30 to convert marketable securities to cash and the firm's marketable securities portfolio will earn an 8% annual return (use 365 day year). Also, assume that the standard deviation of Five Below's daily net cash flows is estimated to be $27,000 and the LCL is $1,500. Five Below uses the Miller Orr model. Required: a. Calculate the spread. b. Calculate the target cash balance C. Calculate the upper controllimit d. Calculate the average cash balance

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