Bates Corporation has determined that its target cash balance if it uses the BAT model is $1,000.

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Bates Corporation has determined that its target cash balance if it uses the BAT model is $1,000. The total cash needed for the year is $16,000, and the order cost is $5. What interest rate must Bates be using?

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Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Question Posted: Oct 05, 2023 05:07 AM

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Bates Corporation has determined that its target cash balance if it uses the BAT model is $1,000.

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Fundamentals Of Corporate Finance

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