The Burger Stop spends $52,000 a week to pay bills and maintains a lower cash...
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Finance
The Burger Stop spends $52,000 a week to pay bills and maintains a lower cash balance limit of $60,000. The standard deviation of the disbursements is $7,500.
The applicable weekly interest rate is 0.04 percent, and the fixed cost of transferring funds is $50.
What is your optimal average cash balance based on the Miller-Orr model?
Please answer and explain step by step. Thanks
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