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Baumol model for working capital cash

Forums › ACCA Forums › ACCA FM Financial Management Forums › Baumol model for working capital cash

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • Author
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  • November 28, 2019 at 5:52 pm #554053
    zns123
    Participant
    • Topics: 1
    • Replies: 2
    • ☆

    Dear sir,

    I noticed that in example no 2, opportunity cost been taken as 9%-5% but in practice questions Pearl Plc opportunity cost been taken as 12% without subtracting of 5% on deposit.

    Can you please elaborate. Thank you

    November 29, 2019 at 8:17 am #554117
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    In future you must ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other.

    I assume that you have watched the free lectures working through the example in our lecture notes, because I explain it in the lecture (and it would be pointless to use the notes without watching the lectures – it is in the lectures that I explain and expand on the notes).

    I do not have a practice question called Pearl. You do not say where you found it.

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