(Answered) Mayas incs optimal cash transfer amount using the baumol

Finance

Maya's Inc.'s optimal cash transfer amount, using the Baumol model, is $55,385. The firm's fixed cost per cash transfer of marketable securities to cash is $180. In addition, the total estimated cash costs (transfers and carrying cost) for the firm, based on 16 transactions per year, are $5,760. On what opportunity cost of holding cash was this analysis based?

A. 19.2%
B. 10.4%
C. 6.3%
D. 12.1%
E. 9.6%

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