Question: The chapter describes free cash flows for common equity shareholders Suppose

The chapter describes free cash flows for common equity shareholders. Suppose a firm has no debt and uses marketable securities to manage operating liquidity. If the firm uses cash to purchase marketable securities, how does that transaction affect free cash flows for common equity shareholders in that period? If the firm sells marketable securities for cash, how does that transaction affect free cash flows for common equity shareholders in that period?


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  • CreatedJune 30, 2012
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