For leo inc and according to the baumol model what is leos


For Leo, Inc. and according to the Baumol model, what is Leo's Inc. average cash balance if the total cash needed for transactions annually is $7,569,000 and the company can hold marketable securities that yield 10 percent, and then convert these securities to cash at a cost of only $50 per transaction.

A. $35,356
B. $43,500
C. $20,157
D. $72,711
E. $48,918

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Financial Management: For leo inc and according to the baumol model what is leos
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