Question
Following Baumol's cash model, what is the optimal cash balance Q* for a company given that the company's cash needs are 40,000 per week, transaction
Following Baumol's cash model, what is the optimal cash balance Q* for a company given that the company's cash needs are 40,000 per week, transaction costs for the year are 300 and the rate of interest forgone is 7%.
a.
178,285.74
b.
133,523.67
c.
134,907.38
d.
188,507.89
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Analysis and Design of Analog Integrated Circuits
Authors: Paul R. Gray, Paul J. Hurst Stephen H. Lewis, Robert G. Meyer
5th edition
1111827052, 1285401107, 9781285401102 , 978-0470245996
