Question: Chapter 7 builds on the concepts introduced on chapter 6, the importance of Current Asset Management cannot be under estimated. Discuss why firms walk a

Chapter 7 builds on the concepts introduced on chapter 6, the importance of Current Asset Management cannot be under estimated. Discuss why firms walk a fine line between too much and not enough cash, and marketable securities on the balance sheet. Why is too much cash detrimental to profit, while too little cash is also a potentially dangerous position?

Additionally, why are US Treasury Bills the marketable security of choice even though the yield/return is so low?

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