________ Is the Study of Optimal Decision Making When Decision

question 13

Short Answer

________ is the study of optimal decision making when decision makers ae assumed to be rational and when each decision maker tries to anticipate the actions and reactions of other decision makers.

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Definitions:

Float Costs

The expenses associated with issuing new stocks or bonds, including underwriting, legal, and registration fees.

Optimal Cash Balance

The ideal amount of cash a company should hold to minimize both holding costs and transaction costs.

Float Cost Impact

The effect of delayed checks or securities settlements on the use of funds, which can affect a company's cash flow.

Target Cash Balance

The optimal level of cash a company aims to maintain to manage daily operations and accommodate unexpected expenses or investment opportunities.