Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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? Show all formulas and steps.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing An International Approach

Authors: Wally Smieliauskas, Amy Kwan, Kathleen Cogliano, Catherine Barrette

8th Canadian Edition

1259451275, 978-1259451270

More Books

Students also viewed these Accounting questions

Question

List several common optimization models.

Answered: 1 week ago

Question

True or False, A contra-account is added to the account it offsets

Answered: 1 week ago

Question

explain what is meant by experiential learning

Answered: 1 week ago

Question

identify the main ways in which you learn

Answered: 1 week ago