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Excess cash held by a firm should be: Question 1Answer a....

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Question

Finance

Excess cash held by a firm should be:
Question 1Answer
a.
reinvested by the firm in projects offering rates of return higher than the cost of capital.
b.
distributed to bondholders in the form of extra coupon payments.
c.
reinvested by the firm in the financial markets.
d.
reinvested by the firm in projects offering the lowest rate of return.

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