Touchdown co has a lower limit of cash of 1000 set by, Ask an Expert

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Touchdown Co. has a lower limit of cash of $1,000 set by management. The variance of the cash flows is $2,500, with a fixed cost of $25 to buy or sell marketable securities. The interest rate earned on marketable securities is .023% per day.

a) What is the target cash balance?

b) What is the upper limit of cash?

c) Give a brief description of how the cash balance will be managed.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92739971

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