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
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FMBaumol model for working capital cash
6y ago#1In 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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