How would you expect a firms cash balance to respond to the following changes? a. Interest rates
Question:
How would you expect a firm’s cash balance to respond to the following changes?
a. Interest rates increase.
b. The volatility of daily cash flow decreases.
c. The transaction cost of buying or selling marketable securities goes up.
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a An increase in interest rates should decrease cash balances bec...View the full answer
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Related Book For 
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
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