Suppose that the rate of interest increases from 4% to 8% per year. Would firms' cash balances

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Suppose that the rate of interest increases from 4% to 8% per year. Would firms' cash balances go up or down relative to sales? Explain.
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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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