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Category > Business & Finance Posted 03 May 2017 My Price 8.00

The Seminole Company wishes to apply

The Seminole Company wishes to apply the Miller-Orr model to manage its cash investment. Seminole’s management has collected the following estimates:

Cost per transaction

= $200

Variance of daily cash flows

= $10,000

Opportunity cost of cash, per day

= 0.05%

Seminole management has figured, based on their experience dealing with the cash flows of the company, that there should be a cushion— a safety stock—of cash of $20,000. Calculate the following:

a. the lower limit

b. the return point

c. the upper limit

 

 

Answers

(8)
Status NEW Posted 03 May 2017 09:05 AM My Price 8.00

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file 1493803243-answer1.docx preview (77 words )
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