The answers for the following workout questions must be given on the space provided under each...

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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-OT 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 Reguired: Determine 1 The return point (C*), rounding to the nearest one birr, will be: 2. The upper limit (L) will be: 3. The average cash balance, rounding to the nearest one birr, will be: 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-OT 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 Reguired: Determine 1 The return point (C*), rounding to the nearest one birr, will be: 2. The upper limit (L) will be: 3. The average cash balance, rounding to the nearest one birr, will be:

Answer rating: 100% (QA)

Req 1 Return point Lower limit 13 Spread Spread 3 34 transac... View the full answer