The cynster corp requires that their cash balance never dip, Ask an Expert

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The Cynster Corp. requires that their cash balance never dip below $100. The standard deviation of their monthly net cash flows is $200. The interest rate is 1% per month. The fixed transaction cost is $10.

1. What is the optimal cash balance? C*= $411

2. What is the upper limit of their cash balance? U*= $1033

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91825991

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