A company spends on average 75,000 per week to pay its bills and maintains a lower cash
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A company spends on average €75,000 per week to pay its bills and maintains a lower cash balance limit of €40,000. The applicable interest rate is 6.12percent and the fixed cost of transferring funds is €32. What is the optimal initial cash balance based on the BAT model?
Related Book For
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1439080603
12th Edition
Authors: Charles H Gibson
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