If a Firm Has Achieved Its Target Cash Balance the New

question 14

Multiple Choice

If a firm has achieved its target cash balance the new 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.

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Definitions:

Price Per Share

The current market value of a company's single share of stock, reflecting the investors' perceptions of its future prospects.

CRM

Customer Relationship Management, a technology for managing all your company's relationships and interactions with current and potential customers.

Customer Service

The assistance and support provided by a company to those people who buy or use its products or services.

Customer-Touching

Technologies that allow customers to interact directly with a company's website or services, enhancing customer experience.