1. 19A.1 The BAT model Given the following information, calculate the target cash balance using the BAT...
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1. 19A.1 The BAT model Given the following information, calculate the target cash balance using the BAT model:
Annual interest rate 12%
Fixed order cost $100 Total cash needed $240 000 1.
What is the opportunity cost of holding cash, the trading cost and the total cost? What would each of these costs be if $15 000 were held instead? If $25 000 were held?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781743768051
8th Edition
Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan
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