a. What is a target cash balance? b. What is the basic trade-off in the BAT model?
Question:
a. What is a target cash balance?
b. What is the basic trade-off in the BAT model?
c. Describe how the Miller–Orr model works.
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ANSWER a A target cash balance refers to the desired or optimal level of cash that a company aims to maintain on its balance sheet It represents the a...View the full answer
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Related Book For 
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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