Question: FINC 301's optimal cash transfer amount, using the Baumol model, is GHS 60,000. The firm's fixed cost per cash transfer of marketable securities to cash

FINC 301's optimal cash transfer amount, using the Baumol model, is

FINC 301's optimal cash transfer amount, using the Baumol model, is GHS 60,000. The firm's fixed cost per cash transfer of marketable securities to cash is GHS 180, and the total cash needed for transactions annually is GHS 960,000. On what opportunity cost of holding cash was this analysis based? (10 marks)

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