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.
Can you draw Capital asset pricing model with example and explain?????
Goodshape Company has currently, an ordinary share capital of Rs. 2.5 million, consisting of 25,000 shares of Rs. 100 each. The management is planning to raise another Rs. 2 milli
Explain how the cash budget and the capital budget relate to pro forma financial statements. The cash budget demonstrates the projected flow of cash in and out of the firm fo
Question 1: (a) Explain fully the following financial accounting techniques: i. Cash accounting ii. Accrual accounting iii. Fund accounting iv. B
Under what circumstance would the U.S. dollar and the Canadian dollar be said to have achieved purchasing power parity? The U.S. dollar and the Canadian dollar would be referred
Forms of Liquidity: Definition: Liquidity defines to how quickly and cheaply an asset will be converted into cash. Money (in the form of cash) is the most liquid asset. Assets
Agency Mortgage-Backed Securities (AMBS) are securities that are backed by the mortgage loans. These securities include mortgage passthrough securities, stripped
The Project to be Addressed by the Paper: You have just graduated from CCI's MBA program and have secured a position as a fund manager for a well known investment banking house
Q. Explain Short- and long-term financing mix? In forming a fresh business there is no business history to present to the bank thus there is additional uncertainty which will n
A firm has net working capital of -$800. Long-term debt is $15,400, total assets are $24,800 and fixed assets are $19,100. What is the amount of the total liabilities.
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: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd