Why might firms prefer to hold more liquidity in borrowing facilities rather than raising capital from shareholders?
A) Firms can obtain more capital from borrowing
B) Obtaining the money is faster via borrowing
C) Borrowing is often cheaper
D) Firms would like to avoid paying dividends to investors
Correct Answer:
Verified
Q1: Which of the four motives for holding
Q3: A firm taking an aggressive approach with
Q4: Which is NOT one of the reasons
Q5: A firm taking a conservative approach with
Q6: The term "cash on hand" refers to:
A)cash
Q7: What is the optimal amount of cash
Q8: The transactions motive refers to:
A)the motive to
Q9: Which of the following is not an
Q10: To be included in "cash on hand"
Q11: Which of the following is considered as
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