2 Based on the MillerOrr model, describe what will happen to the lower limit, the upper limit...

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2 Based on the Miller–Orr model, describe what will happen to the lower limit, the upper limit and the spread

(the distance between the two) if the variation in net cash flow grows. Give an intuitive explanation for why this happens. What happens if the variance drops to zero? (30 marks)

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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