Your firm spends $38,000 a week to pay bills and maintains a lower cash balance limit...
Rosie O'Grady's spends $98,000 a week to
pay bills and maintains a lower cash balance limit of $75,000. The
standard deviation of the disbursements is $12,200. The applicable
interest rate is 4.36 percent and the fixed cost of transferring
funds is $38. What is the total cost of holding cash based on the
BAT model?
Rosie O'Grady's spends $98,000 a week to pay bills and maintains a lower cash balance limit of $75,000. The standard deviation of the disbursements is...