RAC has determined that it target cash balance using the BAT model is $6,556. The total cash needed for the next
15 weeks is $31,000. The cost of selling marketable securities is $10 per transaction.
a. How much is the trading costs?
b. How much is the annualized interest rate being earned on the marketable securities?
c. How much is the opportunity cost, trading cost and total cost?
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