QUESTION TWO Wema Ltd has estimated that the standard deviation of its daily net cash flows is Sh.2, 500. The firm pays sh.50 in transaction costs to transfer funds into and out of this money market. The rate of interest in the money market is 7.465% p.a. Wema uses the Miller-Orr Model to set its target cash balances. Required a) What is Wemas target cash balance? b) What is the lower and upper cash limit? c) What are the Wemas decision rules? d) Determine Wemas expected average cash balanc