Slap Shot Corporation has a fixed cost associated with buying and selling marketable securities of $40. The
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Slap Shot Corporation has a fixed cost associated with buying and selling marketable securities of $40. The interest rate is currently .013 percent per day, and the firm has estimated that the standard deviation of its daily net cash flows is $80. Management has set a lower limit of $1,500 on cash holdings. Calculate the target cash balance and upper limit using the Miller–Orr model. Describe how the system will work.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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