Rework Problem 19 assuming: a. Wildcat maintains a minimum cash balance of $30 million. b. Wildcat maintains

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Rework Problem 19 assuming:
a. Wildcat maintains a minimum cash balance of $30 million.
b. Wildcat maintains a minimum cash balance of $10 million.
Based on your answers in (a) and (b), do you think the firm can boost its profit by changing its cash management policy? Are there other factors that must be considered as well? Explain.
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Corporate Finance Core Principles and Applications

ISBN: 978-0077905200

3rd edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

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