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Regular Part II Workout Questions (10%) The answers for the following workout questions must be given on the space provided under each requirement. A. ARIF
Regular Part II Workout Questions (10%) The answers for the following workout questions must be given on the space provided under each requirement. A. ARIF Company is planning to use Miller-Orr model to minimize the cost of managing its cash. For this purpose, you are provided with the following data: The monthly annual cost of carrying cash is 2% The fixed cost trading marketable securities is Br 40 per transaction The monthly variance of net cash flows is Br 1,000 The minimum level of cash at all times should be Br 300 Required Determine The return point (C). rounding to the nearest one birr, will be (5pts.) 2. The upper limit (L') will be: (3pts.) 3. The average cash balance, rounding to the nearest one birr, will be: (2pts.) ...THE END
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