How cash management is explained through Baumol model?
How cash management is explained through Baumol model? Baumol developed a model (The Transactions Demand for Cash: An Inventory Theoretic Approach) which is usually used in inventory management but has its application in determining the optimal cash balance also. The optimal cash balance is reached at a point where the total cost is the minimum. … Continue reading How cash management is explained through Baumol model?
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