Using the Baumol Model Given the following information, calculate the target cash balance using the Baumol model:

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Using the Baumol Model Given the following information, calculate the target cash balance using the Baumol model:

Annual interest rate 7%

Fixed order cost $10 Total cash needed $5,000 How do you interpret your answer?

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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