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A higher average daily disbursement float than average daily collection float is more desirable for a firm O The Baumol model helps firm to find out their desirable level of cash balance under certainty O Accounts payable increase the number of days a firm's resources are tied up in the operating cycle Any presence of a cash buffer affects the cost of holding cash and ultimately the annual cost of cash for a particular firm

A higher average daily disbursement float than average daily collection float is more desirable for a firm O The Baumol model helps firm to find out their desirable level of cash balance under certainty O Accounts payable increase the number of days a firm's resources are tied up in the operating cycle Any presence of a cash buffer affects the cost of holding cash and ultimately the annual cost of cash for a particular firm

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Which of the following is false? * G O A higher average daily disbursement float than average daily collection float is more desirable for a firm The Baumol model helps firm to find out their desirable level of cash balance under certainty O Accounts payable increase the number of days a firm's resources are tied up in the operating cycle Any presence of a cash buffer affects the cost of holding cash and ultimately the annual cost of cash for a particular firm
Transcribed Image Text:Which of the following is false? * G O A higher average daily disbursement float than average daily collection float is more desirable for a firm The Baumol model helps firm to find out their desirable level of cash balance under certainty O Accounts payable increase the number of days a firm's resources are tied up in the operating cycle Any presence of a cash buffer affects the cost of holding cash and ultimately the annual cost of cash for a particular firm
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