### Is it possible for a firm to have too much cash

Assignment Help Financial Management
##### Reference no: EM13727141

Is it possible for a firm to have too much cash? Why would shareholders care if a firm accumulates large amounts of cash? What options are available to a firm if it believes it has too much cash? How about too little?

#### Questions Cloud

 Calculate the cost of preferred stock and common stock : Apple Corporation wants to issue bonds with a 9% coupon rate, a face value of \$1,000, and 12 years to maturity. Apple estimates that the bonds will sell for \$1,090 with issuing (floatation costs equal \$15 per bond – this reflects an 8% before tax cos.. Assuming annual payments and assuming monthly payments : Suppose we are assuming a \$5 million 20-year mortgage with 8 years remaining at a rate of 4%. If we could obtain a new 8-year mortgage for 5%, what is the value of assuming this mortgage? Water municipality must deposit money into a sinking fund : To pay off \$50,000,000 worth of new construction bonds when they come due in 18 years, a water municipality must deposit money into a sinking fund. Payments to the fund will be made quarterly, starting three months from now. If the interest rate for .. Interest rate remains constant over entire period of time : Determine the current amount of money that must be invested at 14% nominal interest, compounded monthly, to provide an annuity of \$11,500 (per year) for 6 years, starting 11 years from now. The interest rate remains constant over this entire period o.. Is it possible for a firm to have too much cash : Is it possible for a firm to have too much cash? Why would shareholders care if a firm accumulates large amounts of cash? What options are available to a firm if it believes it has too much cash? How about too little? What is marys current min monthly payment : Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRS: Characteristics of a firm with a long operating cycle : What are some of the characteristics of a firm with a long operating cycle? What are some of the characteristics of a firm with a long cash cycle? Provide examples of firms that are operating or have operated with these types of cycles and explain wh.. What is the addition to retained earnings : Billy’s Exterminators, Inc., has sales of \$598,000, costs of \$296,000, depreciation expense of \$48,000, interest expense of \$34,000, a tax rate of 35 percent and paid out \$69,000 in cash dividends. What is the addition to retained earnings? Value of the shareholders equity account for this firm : Penguin Pucks, Inc., has current assets of \$6,700, net fixed assets of \$23,600, current liabilities of \$5,850, and long-term debt of \$14,100. What is the value of the shareholders’ equity account for this firm? How much is net working capital?

### Write a Review

#### What is the preferred stock price if the required rate

An issue of preferred stock is paying an annual dividend of \$5. The growth rate for the firms common stock is \$14. What is the preferred stock price if the required rate of return is 11%.

#### Current price of stock problem

The current price of Yusof Corporation stock is RM26.50 per share. Earnings next year should be RM2 per share and it should pay a RM1 dividend. The P/E multiple is 15 times on average. What price would you expect for Yusof Corporation’s stock in the ..

#### What are bond ratings and how do they impact bond valuation

What are bond ratings and How do they impact bond valuation - who are the bond ratings agencies and what do the ratings mean? When ratings fall what happens to the valuation of a bond and why?

#### Question 1 american standard co has a 90 day pound1 million

question 1 american standard co. has a 90 day pound1 million receivable. american standards bank bank of america

#### Operating costs other than depreciation

Wells Water Systems recently reported \$12,550 of sales, \$4,250 of operating costs other than depreciation, and \$1,700 of depreciation. The company had no amortization charges, it had \$3,250 of outstanding bonds that carry a 6.75% interest rate, and i..

#### Determine the investments net present value

Determine the investment's net present value, the internal rate of return, payback period and the discounted payback period and analyse the profitability of Briscoes Ltd by preparing a common-size income statement and by calculating any other ratios..

#### Draw policy conclusions from the barings case

Have global financial markets become safer or riskier thanks to the presence of derivative instruments? Elaborate your argument using financial and economic analysis

#### Compare the hedging alternatives for the myr

Compare the hedging alternatives for the MYR with a scenario under which Yankee remains unhedged. Do you think Yankee should hedge or remain unhedged? If Yankee should hedge, which hedge is most appropriate?

#### Complete the financial reporting for each period

Complete the financial reporting for each period

#### Calculation for both the quick ratio and the current ratio

hich item is not included in the calculation for both the quick ratio and the current ratio?

#### One area in which you are assisting is in the setup of

one area in which you are assisting is in the setup of business development in central and south america for navigation

#### What is the beta of your portfolio

What is the beta of your portfolio?