Fundamentals of Corporate Finance Standard Edition
10th Edition
ISBN: 9780078034633
Author: Stephen Ross, Randolph Westerfield, Bradford D. Jordan
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 19, Problem 19.1CTF
Summary Introduction
To discuss: The definition of cash management.
Introduction:
The fundamental objective of cash management is to maintain the adequate cash investment and simultaneously the firm’s operation are also maintained effectively and efficiently.
Expert Solution & Answer
Explanation of Solution
Cash management indicates a broad area of finance that refers to the process of handling and using of cash in the business. It includes evaluating the cash flow, market liquidity, and investments.
Conclusion
Cash management is necessary because the businesses are motivated to hold cash for speculation, precaution, and for carrying out business-related transactions.
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Chapter 19 Solutions
Fundamentals of Corporate Finance Standard Edition
Ch. 19.1 - What is the transaction motive, and how does it...Ch. 19.1 - What is the cost to the firm of holding excess...Ch. 19.2 - Which would a firm be most interested in reducing,...Ch. 19.2 - Prob. 19.2BCQCh. 19.2 - Prob. 19.2CCQCh. 19.3 - Prob. 19.3ACQCh. 19.3 - Prob. 19.3BCQCh. 19.4 - Prob. 19.4ACQCh. 19.4 - What is a zero-balance account? What is the...Ch. 19.5 - What are some reasons why firms find themselves...
Ch. 19.5 - Prob. 19.5BCQCh. 19.5 - Why are money market preferred stocks an...Ch. 19.A - Prob. 1ACQCh. 19.A - Prob. 1BCQCh. 19.A - Prob. 1CCQCh. 19.A - Prob. 1QPCh. 19.A - Prob. 2QPCh. 19.A - Prob. 3QPCh. 19.A - Prob. 4QPCh. 19.A - Prob. 5QPCh. 19.A - Prob. 6QPCh. 19.A - Prob. 7QPCh. 19.A - Prob. 8QPCh. 19.A - Prob. 9QPCh. 19.A - Prob. 10QPCh. 19 - Prob. 19.1CTFCh. 19 - Prob. 19.2CTFCh. 19 - Prob. 19.3CTFCh. 19 - Prob. 1CRCTCh. 19 - Prob. 2CRCTCh. 19 - Prob. 3CRCTCh. 19 - Prob. 4CRCTCh. 19 - Prob. 5CRCTCh. 19 - Prob. 6CRCTCh. 19 - Collection and Disbursement Floats [LO1] Which...Ch. 19 - Prob. 8CRCTCh. 19 - Prob. 9CRCTCh. 19 - Prob. 10CRCTCh. 19 - Prob. 11CRCTCh. 19 - Prob. 12CRCTCh. 19 - Prob. 13CRCTCh. 19 - Prob. 1QPCh. 19 - Prob. 2QPCh. 19 - Prob. 3QPCh. 19 - Prob. 4QPCh. 19 - Prob. 5QPCh. 19 - Prob. 6QPCh. 19 - Prob. 7QPCh. 19 - Prob. 8QPCh. 19 - Prob. 9QPCh. 19 - Prob. 10QPCh. 19 - Prob. 11QPCh. 19 - Prob. 12QPCh. 19 - Prob. 1MCh. 19 - Prob. 2MCh. 19 - Prob. 3M
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