Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. msu's assistant treasurer wants to use the miller-

MSU's assistant treasurer wants to use the Miller-Orr Model to determine the optimal transfer amount...

60.1K

Verified Solution

Question

Finance

MSU's assistant treasurer wants to use the Miller-Orr Model to determine the optimal transfer amount and has developed the following parameters: an annual opportunity cost is 12%, a fixed cost per securities transaction is $75, total annual cash needs for the year is $500,000, lower control limit = $5,000, and variance of daily cash flows = $25,000.

What should the cash return level be?

What is the optimal value of upper control limit?

What is the average cash balance?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. (a) Find the directional derivative of f at (2,1) in the direction from (2,1) to...

Basic Math
Q

1- what is advantage does pulsed field gradient electrophoresis in gels have over conventional slab gel...

Chemistry
Q

AutoCAD command prompts are grouped under Tabs according to their command functions. Such groups are labelled...

Civil Engineering
Q

In the Phaedo, Socrates says that the body is an obstacle in the search for knowledge. This...

Psychology
Q

Light of wavelength 710 nm in vacuum passes through a piece of quartz of refractive...

Physics
Q

1 In the diagram above AC and AD are tangent to circle B at points...

Geometry
Q

Which choice shows a set of data that could be represented by the box plot...

Geometry
Q

In an orthonrmal cordinate system for thetriangle, a circle inscribed in a triangle with vertices...

Algebra
Q

Frank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly...

Accounting
Q

All of the following measure a company's profitability except A. Gross Profit Percentage B. Rate...

Accounting
Q

The following is the unadjusted trial balance for Rainbow Lodge Ltd. at its year end,...

Accounting
Q

The Standard and Poor's (S&P) 500 stock index is a(n) Multiple Choice A) price-weighted index...

Finance