The xyz corp requires that their cash balance never dip


The XYZ 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.

What is the optimal cash balance?

What is the upper limit of their cash balance?

 

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: The xyz corp requires that their cash balance never dip
Reference No:- TGS0620371

Expected delivery within 24 Hours