If a firm has achieved its target cash balance the net 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.
E) None of the above.
Correct Answer:
Verified
Q3: A financial manager should be concerned about
Q4: The cost of holding cash:
A)is the opportunity
Q6: Most large firms hold a cash balance
Q7: When a firm writes a check, there
Q9: Marketability risk is synonymous with:
A)maturity risk.
B)default risk.
C)liquidity
Q10: The difference between bank cash and book
Q11: Which of the following is not an
Q12: Checks written by the firm are said
Q13: Firms would need to hold zero cash
Q15: Examples of cash disbursements do not include:
A)
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