3 Given an annual interest rate of 4 per cent, a fixed order cost of 10 and...

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3 Given an annual interest rate of 4 per cent, a fixed order cost of €10 and total cash needed of €5,000, calculate the target cash balance using the Baumol model. How do you interpret your answer? (30 marks)

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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