In the Miller-Orr model of cash management a firm must do each of the following EXCEPT:

Question

Quizplus · Accepted Answer

The Miller-Orr model focuses on determining the variance of cash flows, the transaction costs, the opportunity cost of holding cash, and setting a lower cash balance limit and a target balance, which acts as a control limit. It does not specifically require determining an upper cash balance limit; instead, it sets a range within which the cash balance should be maintained.

In the Miller-Orr Model of Cash Management a Firm Must