a. What is the transaction motive, and how does it lead firms to hold cash? b. What
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a. What is the transaction motive, and how does it lead firms to hold cash?
b. What is the cost to the firm of holding excess cash?
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a The transaction motive refers to the primary reason why firms hold cash which is to facilitate their daytoday business transactions Cash is necessar...View the full answer
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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