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Re: Baumol's model of cash mgt
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Paramjeet_1988
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Student of Master of Science at IIT Kharagpur
Kharagpur, West Bengal
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Re: Baumol's model of cash mgt - November 1st, 2010

Some of the assumption for Baumol model of cash management are:-
The interest rate or opportunity cost should remain the same.
Company should be able to predict her cost per period correctly.
Company should have continuous source of the money.
Transaction cost should remain the same for the given period.
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