Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

A company that increases its liquidity by holding more cash and marketable securities is

a. likely to achieve a higher return on equity because of higher interest income.

b. going to maximize firm value because risk is decreased.

c. going to have to sell common stock to raise the cash to become more liquid. d likely to achieve a lower return on equity because of the smaller rates of return earned on cash and marketable securities compared to the firms other investments.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M947081

Have any Question? 


Related Questions in Basic Finance

Using the following information calculate the total

Using the following information, calculate the total salesforce size necessary by using each of the following approaches: breakdown, workload, and incremental. Be sure to show your work. Also, explain the advantages and ...

Suppose your firm is seeking a four year amortizing 290000

Suppose your firm is seeking a four year, amortizing $290,000 loan with annual payments and your bank is offering you the choice between a $299,500 loan with a $9,500 compensating balance and a $290,000 loan without a co ...

A companys current ratio is 30 if the company uses cash to

A company's current ratio is 3.0. If the company uses cash to retire notes payable due within one year, would this transaction increase or decrease the current ratio and asset turnover ratio? Current Ratio: Decrease; Ass ...

Explain the theory of purchasing power parity pppbased on

Explain the theory of purchasing power parity (PPP). Based on this theory, what is a general forecast of the values of currencies in highly inflated countries? Explain how you could determine whether purchasing power par ...

All of us have a tendency to categorize people into

All of us have a tendency to categorize people into stereotypic groups. If you look around at the students on campus, you will see science geeks, artsy freaks, jocks, wallflowers, cheerleaders, and party animals, just to ...

Get rich quick a funds management company is considering an

Get Rich Quick, a funds management company, is considering an investment in a new pharmaceutical company. The company will be unable to pay a dividend until the end of Year 6. If a new product is successfully developed f ...

Consider a lottery that pays to the winner an annuity of

Consider a lottery that pays to the winner an annuity of $800 that begins at the end of the first year and continues at the end of each consecutive year for a total of 18 years with one exception. Because of high adminis ...

As a financial advisor for the spain development co you

As a financial advisor for the Spain Development Co., you have been given the construction and marketing studies for the proposed Timbercreek office project. Several potential sites have been selected, but a final decisi ...

1 when an author submits a manuscript to a journal what is

1. When an author submits a manuscript to a journal, what is the general process by which the decision whether or not to publish the paper is made? 2. Distinguish between a paper session and a poster session.

1 design an observational study of your own including the

1. Design an observational study of your own, including the creation of a set of behavioral categories that would be used to code for one or more variables of interest to you. Indicate the decisions that you have made re ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro