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Nire Ltd has determined that its short-term investments are yielding 5% annually and the cost is $25 each time it buys and sells securities. Nire's
Nire Ltd has determined that its short-term investments are yielding 5% annually and the cost is $25 each time it buys and sells securities. Nire's
total assets amount to $150,000, the variance of its daily cash flows is estimated to be $43,590 and the firm wants to keep a minimum 10% of total assets in a cash account.
a) What is the firm's target cash balance?
RESPONSE
b) What is the firm's upper limit for the cash account?
total assets amount to $150,000, the variance of its daily cash flows is estimated to be $43,590 and the firm wants to keep a minimum 10% of total assets in a cash account.
a) What is the firm's target cash balance?
RESPONSE
b) What is the firm's upper limit for the cash account?
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a To determine the target cash balance we need to first calculate the minimum cash balance that Nire ...
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302
