The Level of Cash a Firm Holds Is Irrelevant; It

question 25

True/False

The level of cash a firm holds is irrelevant; it can never be short of cash since a firm is able to raise new money instantly at a fair rate, while it can never have surplus cash since the firm can invest excess cash at a fair rate to earn a net present value (NPV) of zero.

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Definitions:

Anterior Tibial Artery

A significant artery in the lower leg that provides blood to the anterior compartment of the leg and dorsal surface of the foot.

Femoral Artery

A major blood vessel in the thigh that supplies blood to the lower limb.

Inferior Vena Cava

The largest vein in the human body, carrying deoxygenated blood from the lower half of the body back to the heart.

Radial Vein

A vein that runs along the radial side of the forearm and drains blood from the hand and forearm.