Describe the factors that motivate firms to carry cash

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Reference no: EM131222985

1. How would you interpret a lambda of 1.00? Of 5.00? Of 0.75?

2. Describe the factors that motivate firms to carry cash

3. Given that cash holdings typically some degree of return, how can cash holdings still imply an opportunity cost on the holder of cash?

Reference no: EM131222985

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