Question: Cash flow volatility not only increases the likelihood that a firm will need to access capital markets, it also increases the costs of doing so.

Cash flow volatility not only increases the likelihood that a firm will need to access capital markets, it also increases the costs of doing so. Provide solid arguments regarding this. Discuss how cash holdings are decreasing in the ease of rising cash and availability of cash from internal sources, and are increasing in growth opportunities, asymmetric information levels, and financial distress costs
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