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Biashara Limited estimates its total cash requirement for next year as Kshs 20 million. The company's opportunity cost of funds is 15% p.a. The company

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Biashara Limited estimates its total cash requirement for next year as Kshs 20 million. The company's opportunity cost of funds is 15% p.a. The company will have to incur Sh. 150 per transaction when it converts its short-term securities into cash. Required Determine the optimum cash balance The total cost of the demand for optimal cash balance

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