9 Opportunity versus Trading Costs Konyagi plc has an average daily cash balance of 10,500. Total cash

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9 Opportunity versus Trading Costs Konyagi plc has an average daily cash balance of £10,500.

Total cash needed for the year is £65,000. The interest rate is 3 per cent, and replenishing the cash costs

€17 each time. What are the opportunity cost of holding cash, the trading cost and the total cost? What do you think of Konyagi’s strategy?

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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Question Posted: Jul 19, 2024 05:04 PM

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9 Opportunity versus Trading Costs Konyagi plc has an average daily cash balance of 10,500. Total cash

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Corporate Finance

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