Gen Combo Looseleaf Principles Of Corporate Finance With Connect Access Card
Gen Combo Looseleaf Principles Of Corporate Finance With Connect Access Card
13th Edition
ISBN: 9781260695991
Author: Richard A Brealey
Publisher: McGraw-Hill Education
Question
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Chapter 30, Problem 1PS
Summary Introduction

To discuss: Reasons of holding large and small inventories by food stores and railways.

Expert Solution
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Explanation of Solution

The main reason is food stores primarily sell the service of food choices for purchasers on their shelves. So, they hold large inventories. Whereas, railroads earn cash by operative massive fastened assets. So it maintains small inventories.

Summary Introduction

To discuss: Reason person X can think that pharmaceutical companies hold more cash and securities.

Expert Solution
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Explanation of Solution

Person X views that, the main reason is that pharmaceutical companies are based on research and development engines that needs more funding and cash for discovering new types of drugs and also for the acquisition of intellectual property.

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