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Sigma Plus Corporation Has a Variance of Daily Cash Flow

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Sigma Plus Corporation has a variance of daily cash flow of $8. The daily interest rate is.021% (.00021). Sigma desires a minimum cash balance of $80. The fixed cost of a security transaction is $2.00. Using the Miller-Orr model, calculate Sigma's target cash balance, the upper limit on cash balances, and the average daily cash balance. Explain how this is used to manage cash.


Definitions:

Generate Leads

The process of identifying potential customers for a business's products or services.

Sales Presentations

A formal pitch or demonstration aimed at persuading an audience to purchase a product or service.

Auto Magazine

A publication that focuses on automotive industry news, car reviews, and features about new and upcoming vehicles.

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