Excess Cash Held by a Firm Should Be

question 15

Multiple Choice

Excess cash held by a firm should be:

• A)reinvested by the firm in projects offering the lowest rate of return.
• B)reinvested by the firm in projects offering rates of return higher than the cost of capital.
• C)reinvested by the firm in the financial markets.
• D)distributed to bondholders in the form of extra coupon payments.

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Definitions:

Black-hat Hacker

An individual who violates computer security for maliciousness or personal gain, as opposed to ethical purposes.

Cyberloafing

The act of using an employer's Internet and computing resources for personal activities during work hours.

Social Engineering

A manipulation technique that exploits human error to gain private information, access, or valuables, often through deceiving individuals.

White-hat Hacker

An ethical computer security expert who penetrates systems to identify security weaknesses with the intention of fixing them.