If a Firm Has Achieved Its Target Cash Balance the Net

question 17

Multiple Choice

If a firm has achieved its target cash balance the net present value is:

• A)positive because the cash balance is positive.
• B)zero because increasing the cash balance increases the interest cost.
• C)negative because the cash balance has a financing cost.
• D)positive because decreasing the cash decreases the cost of illiquidity.
• E)None of the above.

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Definitions:

Weight Loss Program

A structured plan designed to help individuals achieve and maintain a healthier weight through diet, exercise, and sometimes medical intervention.

Determination Stage

A phase in behavioral change models where an individual is ready and committed to taking action to address a habit or issue.

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Excessive fat accumulation around the stomach and abdomen, raising the risk of cardiovascular disease, diabetes, and other health issues.

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