Question
For Leo, Inc. and according to the Baumol model, what is Leo's Inc. average cash balance if the total cash needed for transactions annually is
For Leo, Inc. and according to the Baumol model, what is Leo's Inc. average cash balance if the total cash needed for transactions annually is $7,569,000 and the company can hold marketable securities that yield 10 percent, and then convert these securities to cash at a cost of only $50 per transaction.
| A. | $35,356 |
| B. | $43,500 |
| C. | $20,157 |
| D. | $72,711 |
| E. | $48,918 |
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
