If a firm has achieved its target cash balance the new present value is:
A) positive because the cash balance is positive.
B) zero because increasing the cash balance increases the interest cost.
C) negative because the cash balance has a financing cost.
D) positive because decreasing the cash decreases the cost of illiquidity.
Correct Answer:
Verified
Q1: Examples of cash disbursements do not include:
A)
Q3: If interest rates were to rise to
Q6: What is the total fixed order cost
Q7: The difference between bank cash and book
Q7: Using the Baumol model, what is the
Q8: What is the total saving to the
Q9: Based on the firm's current practice, how
Q10: If interest rates were to rise to
Q11: What is the total opportunity cost for
Q17: Most large firms hold a cash balance
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents