Question 19A.S-TP.1: The BAT Model Given the following information, calculate the...
The BAT Model Given the following information, calculate the target cash balance using the BAT model:
Annual interest rate | 12% |
Fixed order cost | $100 |
Total cash needed | $240,000 |
What are the opportunity cost of holding cash, the trading cost, and the total cost? What would each of these costs be if $15,000 were held instead? If $25,000 were held?
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Question: 19A.1
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