Assuming that the firm can either hold cash paying no interest or invest in marketable securities, which of the following might induce the manager to hold higher cash balances?
A) bank interest rates are expected to increase
B) future cash flows are relatively predictable
C) the cost of cash balances is relatively high
D) the cost of borrowing is high relative to interest rates on marketable securities
Answer: D) the cost of borrowing is high relative to interest rates on marketable securities
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According to Carly Fiorina, former CEO of Hewlett-Packard, leadership is about:
A) hierarchy. B) title. C) status. D) connecting. E) bragging.
John assured his venture capitalists an earning of 25-percent return on equity when he began his IT startup. In order to achieve this result, he will most likely use which of the following pricing approaches?
A) value-based pricing B) markup pricing C) EDLP D) customer-based pricing E) target return pricing