If the total cash requirement of a company is Rs 2 crore next year, the opportunity cost of funds is 15 percent per annum and the cost of conversion from securities to cash per transaction is Rs 150, the optimum cash balance as per Baumol's Model will be :
| A. | Rs 2 lakhs |
| B. | Rs 4 lakhs |
| C. | Rs 20 lakhs |
| D. | Rs 40 lakhs |
Answer : A Explanation : |
|
|
Option: A Explanation : Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. |
