. What are the reasons for holding cash in companies around the world? 2. ABC Ltd. Has determined that its short-term investments are yielding 5% annually, and the cost is $25 each time it buys and sells securities. ABC's total assets amount $150,000, its variance of net daily cash flow is estimated to be $65,580, and it wants to keep a minimum 10% of total assets in a cash account. (A) What is the firm's cash balance according to Miller-Orr Model? (B) What is the upper limit for the cash account according to Miller-Orr Model?