Kierunki modyfikacji metody baumola zarządzania środkami pieniężnymi – model linii kredytowej
Directions of modifications of the baumol cash management model − line of credit model

Summary/Abstract: The goal of cash management is to maintain the minimum cash balance that will provide a firm with sufficient liquidity and to enhance its profitability without exposing it to undue risk. The goal of my article is to present the line of credit model, which extends the Baumol model to include borrowing from a line of credit. It is most applicable to a firm that experiences steady cash outflows and fixed transaction costs. When compared to the Baumol model, this strategy has a lower total cost.

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