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Pure Gold Corporation expects to make monthly cash payments of P 468,000.00, evenly during the year. The average return on money market placement is 10.40%
Pure Gold Corporation expects to make monthly cash payments of P 468,000.00, evenly during the year. The average return on money market placement is 10.40% per annum and it expects P 25.00 transaction costs per cash transfer. Match each item to a choice: Using the Baumol Cash Management model, what is the company's optimal cash balance? Compute the total Transaction cost using the optimal cash balance? Using the Baumol Cash management Model, what is the average cash balance? Choices: 8,000 #6,000 12,000 #820 780 #7,500 15,000 # 16,000 750
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