The following data relates to V-Fuel Aircraft: Minimum cash balance = $10,000 Standard deviation of daily cash

Question:

The following data relates to V-Fuel Aircraft: Minimum cash balance = $10,000 Standard deviation of daily cash flows = $2,000 per day

a. b. Transaction cost of buying and selling the securities = $45 Interest rate = 0.02 percent per day What is the optimum cash balance according to the Miller-Orr model? What is the upper limit? C. What is the return point?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Foundations Of Airline Finance

ISBN: 9780415743259

2nd Edition

Authors: Bijan Vasigh, Kenneth Fleming, And Barry Humphreys

Question Posted: