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Miller-Orr Model
A financial model used to manage the cash inventory of a firm by setting upper and lower limits on cash balances, determining when to transfer funds.
Cost of Borrowing
The cost of borrowing is the total expense that a company or individual incurs in taking out a loan, including interest payments, fees, and any other charges.
Cash Flows
The net amount of cash being transferred into and out of a business, used as an indicator of financial health.
Miller-Orr Model
The Miller-Orr Model is a financial model used to manage cash balances by setting upper and lower limits on cash reserves, suggesting when to transfer funds to minimize costs.
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