Quiz Ch 19 – T/F High Cash Reserves and Tax Haven Deposits
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Firms with exceptionally high cash reserves frequently utilize tax havens for their cash storage.
True or false: Firms with exceptionally high cash reserves frequently utilize tax havens for their cash storage.
True or false: Numerous high-tech companies maintain substantial holdings of marketable securities.
True or false: Cash reserves decrease when a company procures raw materials on credit.
True or false: Lowering inventory levels results in a cash source.
True or false: Greater liquidity is often associated with firms that maintain substantial holdings of current assets.
True or false: Evidence indicates that investors attach substantial value to liquidity, particularly in the context of companies with growth prospects.
True or false: Expanding long-term assets serves as a cash inflow for the firm.
True or false: The most substantial cash inflows for the firm generally stem from customer payments.
True or false: Companies that aim to match maturities will usually opt for long-term debt to finance their receivables.
True or false: For tax-paying firms, investments in marketable securities generally yield a positive Net Present Value (NPV).