Question
Rosie O'Grady's spends $115,000 a week to pay bills and maintains a lower cash balance limit of $95,000. The standard deviation of the disbursements is
Rosie O'Grady's spends $115,000 a week to pay bills and maintains a lower cash balance limit of $95,000. The standard deviation of the disbursements is $14,600. The applicable interest rate is 4.8 percent and the fixed cost of transferring funds is $50. What is this firm's total cost of holding cash based on the BAT model? please show work
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Financial Management For Decision Makers
Authors: Peter Atrill
8th Edition
129213433X, 978-1292134338
