10. Makmak Corporation uses the Baumol Cash Management Model to determine its optimal cash balance. For the coming year, the expected cash disbursement total P432,000. The interest rate on marketable securities is P8 per transaction. What is the optimal Cash Balance of the company? A. P1,175.76 B. P5,878.78 C. P11,757.55 D. P142,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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10. Makmak Corporation uses the Baumol Cash Management Model to determine its optimal cash balance. For the
coming year, the expected cash disbursement total P432,000. The interest rate on marketable securities is P8
per transaction. What is the optimal Cash Balance of the company?
A. P1,175.76
C. P11,757.55
B. P5,878.78
D. P142,000
Transcribed Image Text:10. Makmak Corporation uses the Baumol Cash Management Model to determine its optimal cash balance. For the coming year, the expected cash disbursement total P432,000. The interest rate on marketable securities is P8 per transaction. What is the optimal Cash Balance of the company? A. P1,175.76 C. P11,757.55 B. P5,878.78 D. P142,000
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