AID13083: A firm disburses Rs 30 lakh every year. The conversion charge is Rs 50 per conversion. The current risk free interest rate is 9%. Find out the optimal cash balance using Baumol model

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Question: A firm disburses Rs 30 lakh every year. The conversion charge is Rs 50 per conversion. The current risk free interest rate is 9%. Find out the optimal cash balance using Baumol model.

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