1. minimum cash balance of Br.10, 000. The cost that converts marketable securities (MSs) to cash is Br.30; the firm’s marketable securities portfolio earns and 12%annual return. The standard division of ADRs daily net cash flows is estimated to be Br.150.
Required: Compute
A. The distance b/n the upper and the lower limits(Z)
B. The upper limit
The average cash balance and the target cash balance
