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Konyagi plc has an average daily cash balance of 10,500. Total cash needed for the year is 65,000. The interest rate is 3 per cent,
Konyagi plc has an average daily cash balance of 10,500. Total cash needed for the year is 65,000. The interest rate is 3 per cent, and replenishing the cash costs 17 each time. What are the opportunity cost of holding cash, the trading cost, and the total cost? What do you think of Konyagis strategy?
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