Determine optimal cash balance

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Hail incorporation has annual cash demand of 1 million. Transaction cost is given as 200 per purchase or sale of securities. Interest on borrowing is given as 12 percent

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Question 1: Using baumol model, determine optimal cash balance

Reference no: EM132512889

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Determine optimal cash balance : Using baumol model, determine optimal cash balance. Hail incorporation has annual cash demand of 1 million. Transaction cost is given as 200
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