Question
Gemini Inc.s optimal cash transfer amount, using the Baumol model, is $60,000. The firms fixed cost per cash transfer of marketable securities to cash is
Gemini Inc.s optimal cash transfer amount, using the Baumol model, is $60,000. The firms fixed cost per cash transfer of marketable securities to cash is $180. In addition, the total estimated cash costs (transfers and carrying cost) for the firm, based on 16 transactions per year, are $5,760. On what opportunity cost of holding cash was this analysis based?
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Quantitative Finance: An Object-Oriented Approach In C++
Authors: Erik Schlogl, Dilip B. Madan
1st Edition
1584884797, 978-1584884798
