Your firm utilizes TZS 130,000 a week to pay bills. The standard deviation of these cash flows

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Your firm utilizes TZS 130,000 a week to pay bills. The standard deviation of these cash flows is TZS 15,000. The fixed cost of transferring funds is TZS 51 a transfer. Your firm has established a lower cash balance limit of TZS 80,000. The weekly interest rate is .067%. Use the Miller-Orr model to answer these three questions. a. What is the optimal initial cash balance? b. What is the optimum upper limit? c. What is the average cash balance

Posted Date: May 18, 2024 11:02 PM

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Your firm utilizes TZS 130,000 a week to pay bills. The standard deviation of these cash flows

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