Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q13. Johnson & Sons Company Ltd estimated cash payments of Rs 60 Lakhs for a one-month period. The average fixed cost for securing capital from
Q13. Johnson & Sons Company Ltd estimated cash payments of Rs 60 Lakhs for a one-month period. The average fixed cost for securing capital from the market is Rs 150 and the interest rate on marketable securities is 15 percent per annum or 1.25 percent for the one-month period. What is the economic order size of cash? ( 15 MARKS)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started