Question: TASK II BAUMOL MODEL (12 POINTS) If Fixed Cost are $15,000 and the Total Cash needed is $250,000 calculate the (a) Target Cash Balance (b)

TASK II BAUMOL MODEL (12 POINTS) If Fixed Cost are $15,000

TASK II BAUMOL MODEL (12 POINTS) If Fixed Cost are $15,000 and the Total Cash needed is $250,000 calculate the (a) Target Cash Balance (b) Opportunity Cost (c) Trading Cost (d) Total Cost using the Baumol Model. Interest Rate is 6.50% INSTRUCTION: (SHOW YOUR CALCULATIONS AND ROUND TO 2 DECIMAL PLACES)

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