Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Explain about Types of costs?
Thus two types of costs are involved in keeping cash balance in a business-
(i) Opportunity Cost
(ii) Transaction Cost
When cash balance increases, opportunity cost increases but transaction cost decreases. Alternatively when cash balance is less signifies opportunity cost decreases but transaction cost increases.
Optimal cash balance is that level of cash at which the opportunity cost and transaction cost becomes equal. In other sense total cost of keeping cash balance will be minimum if both of its components that are opportunity cost and transaction cost are equal.
Assumptions: - The Baumol Model is on the basis of following assumptions:-
(i) The cash requirements of the firm are known with certainty
(ii) The cash disbursements of the firm takes place uniformly over a period of time and is known with certainty
(iii)The opportunity cost of holding cash is recognized and it remains constant.
(iv) The transaction rate of converting securities into cash is known as well as remains constant.
What does the "weight" refer to in the weighted average cost of capital? The weight pass on to in weighted average cost of capital refers to the portion of the total capital in
Explain how to compute the overall balance and discuss its significance. The overall BOP is defined by computing the cumulative balance of payments involving the current account,
Explain how a firm determines the optimal level of current assets. The best possible level of working capital is determined by finding the amount that balances the need for liq
How are financial trades made in an over-the-counter market? Discuss the role of a dealer in the OTC market. In difference to the organized exchanges, which have physical locat
Scenario: You are still a consultant for the Excellent Consulting Group. You have completed the first assignment, developing and testing a forecasting method based on linear regres
QUESTION The Managing Director of your firm is thinking aloud about an appropriate gearing level for the company: "The consultants I spoke to yesterday explained that some t
State about the investigate of Competition Directorate Competition Directorate will generally investigate the below areas: (i) Mergers and takeovers This is when larg
Commercial banks Commercial banks allow deposits liabilities to make loans assets as well as to buy government securities. Deposits are wider in range including checkable depos
What are sources of funds for an assignment?
Public Bourses The origin of this type of bourses can be found in the legislative work of Napoleon. These type of bourses are regulated by the government, brokers are appointed
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd