a. What is the transaction motive for holding cash? b. What is the cost to the firm

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a. What is the transaction motive for holding cash?

b. What is the cost to the firm of holding excess cash?

c. Which of these would a firm be more interested in reducing:

Collection float or disbursement float? Why?

d. What is the benefit from reducing or eliminating float?

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Essentials Of Corporate Finance

ISBN: 9781265414962

11th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Jan 02, 2023 07:08 AM

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a. What is the transaction motive for holding cash? b. What is the cost to the firm

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a The transaction motive for holding cash is to have the funds available to meet the firms shortterm ...View the full answer

Essentials Of Corporate Finance

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