Question: Using Miller-Orr Slap Shot Corporation has a fixed cost associated with buying and selling marketable securities of $75. The interest rate is currently .021 percent

Using Miller-Orr Slap Shot Corporation has a fixed cost associated with buying and selling marketable securities of $75. The interest rate is currently .021 percent per day, and the firm has estimated that the standard deviation of its daily net cash flows is $60. Management has set a lower limit of $1,200 on cash holdings. Calculate the target cash balance and upper limit using the Miller-Orr model. Describe how the system will work.

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