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SML Co. has established a lower limit with regard to its cash balance holdings of $10,000. Its daily cash flows have a standard deviation of

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SML Co. has established a lower limit with regard to its cash balance holdings of $10,000. Its daily cash flows have a standard deviation of $5,000. The annual interest rate on marketable securities is 8 percent. The fixed cost per transaction of buying and selling securities is $12. Calculate the target cash balance

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