Question

st
A firm maintains a separate account for
cash disbursement. Total disbursement
are 262,500 per month, Administrative
and transaction cost of transferring cas
to disbursement is 25 per transfer.
Marketable securities yield is 7.5% per
annum. Determine the optimum cash
balance according to William Baumol
Model.
etc​

Answer 1

Answer:

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