DirectJet utilizes the Baumol model to estimate its cash balance. The airline requires $5 million in cash
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DirectJet utilizes the Baumol model to estimate its cash balance. The airline requires $5 million in cash each time it transacts marketable securities. What is the average cash balance if the holding cost is $500,000 and the transaction costs are $60,000?
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Related Book For 
Foundations Of Airline Finance
ISBN: 9780415743259
2nd Edition
Authors: Bijan Vasigh, Kenneth Fleming, And Barry Humphreys
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