Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Baumol model

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Baumol model

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 25, 2018 at 10:40 am #460076
    toushiga
    • Topics: 424
    • Replies: 172
    • ☆☆☆☆

    Hello Tutor,I have a question about the interest cost using in the Baumol model,
    in BPP study text pg 130 ,the solution for 4.1.1 example
    the cost of holding cash is 12%-9%=3%?Can I know why?Thank you.

    June 25, 2018 at 5:26 pm #460112
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 50572
    • ☆☆☆☆☆

    But I explain why in my free lectures on the Baumol model !! You cannot expect me to type out all of my lectures here if you are not bothering to watch them 🙂

    I do not have the BPP Study Text – only the Revision Kit. I assume that 12% is the return on their investments and the 3% is the interest earned on short-term deposits.

    If you watch the lectures then you do not need to use the Study Text – the lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well. Most important is that you have bought a Revision Kit because that is full of past exam questions (and other exam standard questions).

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.