Quiz Ch 20 – Factors Influencing Higher Cash Balances

Fundamentals of Corporate Finance

Brealey, Myers, and Marcus

10th Edition

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What factor might lead a manager to choose higher cash balances today when considering the option of holding cash with no interest versus investing in marketable securities?

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  • Search Terms: a) a are assume balances bank borrowing can cash cost decrease. either expected firm flows following future high high. d) higher hold in induce interest invest is manager marketable might no of on one or paying predictable. c) rates relative relatively securities. securities. b) the to today? which
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