Multiple Choice
A firm has estimated that it will need $3,000,000 net cash during the year.Current interest rate on money market securities is 6 percent per year and the cost of buying and selling securities cost $50 per transaction.What is the optimal transaction size of securities?
A) $70,710.68
B) $25,100.00
C) $65,285.21
D) $92,511.11 With Baumol's model
Correct Answer:
Verified
Correct Answer:
Verified
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