A company requires Rs 50 lakh to cover its transaction requirements during a year. It holds marketable securities of an equivalent amount that yield 20%. The transaction cost is Rs 200 per...


A company requires Rs 50 lakh to cover its transaction requirements during a year. It holds marketable securities of an equivalent amount that yield 20%. The transaction cost is Rs 200 per transaction. If the optimal size of conversion of securities into cash is Rs 1 lakh, calculate the total transaction and opportunity cost for the optimal size.



May 04, 2022
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