Question: In the chapter opening, we discussed the cash positions of several companies. Automobile manufactures also have enormous cash reserves. At the beginning of 2007, Ford

In the chapter opening, we discussed the cash positions of several companies. Automobile manufactures also have enormous cash reserves. At the beginning of 2007, Ford Motor Co. had $38.7 billion in cash, General Motors had $50.4 billion, and Toyota had about $19.1 billion. Why would firms such as these hold such large quantities of cash?

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