For further query you can Contact Us :

msa@msahomeworkhelp.com
MSA Homework Help

Answer

Cost of Managing Cash

$4.99


Q7. The management of ABC Ltd anticipates Rs 12 lakh in cash outlay (requirement) during the next year. The recent experience has been that it costs Rs 20 to convert marketable securities to cash and vice versa. The marketable securities currently earn 7 percent annum return. Find the total cost of managing cash according to Baumol Model.