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If you know that Nadic Annual cash distribution is SR 150,000, fixed cost per transaction is SR 4, the annual rate of return in securities
If you know that Nadic Annual cash distribution is SR 150,000, fixed cost per transaction is SR 4, the annual rate of return in securities is 10%, the standard deviation = 4000 and the minimum cash balance = 200. Choose the correct answer for the following questions: 1- According to Baumol model, the optimum cash balance (Q) = A- SR 4000 B- SR 2552 C- SR 3464 2- The opportunity cost = A- 500 B- 172 C- 126 3- The number of transactions (N) = A- 38 B- 43 C- 50
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