Exhibit Duckett Group The Duckett Group Is Trying to Determine Its Optimal Average

question 15

Multiple Choice

Exhibit Duckett Group
The Duckett Group is trying to determine its optimal average cash balance.The firm has determined that it will need $5,000,000 net new cash during the coming year.The fixed transaction cost of converting securities to cash is $50, and the firm earns 10 percent on its marketable securities investments.
-Refer to Exhibit Duckett Group.What will be the total cost to Duckett of maintaining the optimal average cash balance, as determined by the Baumol model?

• A) $35,356
• B) $7,071
• C) $18,493
• D) $70,711
• E) $53,190

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Legal and Ethical Differences

The distinction between what is permitted by law and what is considered morally right or wrong.

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Variations in beliefs, practices, and doctrines among different faiths or within a single religious tradition.

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The comprehensive set of rules and principles that govern a society, including laws, regulations, and judicial decisions.

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Relating to moral principles or the branch of knowledge dealing with these, often guiding conduct in a manner considered right or acceptable.