EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
4th Edition
ISBN: 9780134202778
Author: DeMarzo
Publisher: PEARSON CUSTOM PUB.(CONSIGNMENT)
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Chapter 26.6, Problem 1CC
Summary Introduction

To discuss: Three reasons for the firm to hold cash.

Introduction:

Holding cash arises when the cash inflow exceeds cash outflow, and vice versa. This may thrust the firm to a certain and an uncertain situation. To balance these situations, the firm lends to hold cash.

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