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If Fixed Cost are $15,000 and the Total Cash needed is $250,000 calculate the 1. Target...

If Fixed Cost are $15,000 and the Total Cash needed is $250,000 calculate the

1. Target Cash Balance

2. Opportunity Cost

3. Trading Cost

4. Total Cost

using the Baumol Model. Interest Rate is 6.50%

Business   Accounting   
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Answer #1

Note - Interest Rate = rate of Opportunity Cost = 6.5 %

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