Why might a company hold low-yielding marketable securities when it could earn a much higher return on

Question:

Why might a company hold low-yielding marketable securities when it could earn a much higher return on operating assets?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Financial Management

ISBN: 9781337395083

13th Edition

Authors: Eugene F. Brigham, Phillip R. Daves

See More Books

Question Posted: Mar 10, 2024 12:01 AM

See More Questions

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Read the article "Get the Right Mix of Bonds", by Nellie S. Huang in Kiplinger's Personal Finance , 10/2020, and answer the following questions. ARTICLE: Get the Right Mix of Bonds Match your goals...
Northern Virginia Community College HOW MUCH FINANCIAL RISK SHOULD YOU TAKE? Mark D. D'Antonio Nova Southeastern University FORT LAUDERDALE, FLORIDA, U.S.A. Abstract A successful retirement...
Table P-23 contains Southwest Airlines' quarterly income before extraordinary items ($MM) for the years 1988-1999. a. Plot the income data as a time series and describe any patterns that exist. b. Is...
In humid climates, people constantly dehumidify their cellars to prevent rot and mildew. If the cellar in a house (kept at 20C) has 105 m2 of floor space and a ceiling height of 2.4 m, what is the...
An auditor who conducts an audit in accordance with generally accepted auditing standards and concludes that the financial statements are fairly presented in accordance with a comprehensive basis of...
Have I rehearsed a discussion of my strengths and areas for needed development? LO.1
Derive cash disbursements for dividends Johnson & Johnson, a pharmaceutical and medical products company, reported a balance in retained earnings of $26,571 million at the beginning of the year and...
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of...
What is a promissory note, and what are some terms that are normally included in promissory notes?
What are some methods firms can use to accelerate receipts?
Roger Lockhart, a teenager, lost the sight in one of his eyes. He alleged that this was due to the negligence of Dr. Ramon Patel. A summary jury trial was conducted, and the advisory jury awarded the...
Jimmy Joe-Bob Hicky is the district commander for the mostly-rural Spud Valley highway patrol district in western Idaho. Hes attempting to assign highway patrol cars to different road segments in his...
Its important to have a holistic view of all the businesses combined and ensure that the desired levels of risk management and return generation are being pursued. Agree or disagree
(3pts each) During a trip to a casino, Adam Horovitz plays his favorite casino game 10 times. Each time he plays, he has a 41% chance of winning. Assume plays of the game are independent. a. What is...
An epidemiologist plans to conduct a survey to estimate the percentage of women who give birth. How many women must be surveyed in order to be 95% confident that the estimated percentage is in error...
Statement of financial position as at 31 December 2014 ASSETS Non-current assets Property, plant and equipment Delivery van at cost 12,000 Depreciation (2,500) 9,500 Current assets Inventories...
The following table lists the tasks and preceding tasks for a project. Draw the activity-on-node diagram for this project. Task Preceding Tasks A None B None C A D B E C, D F E G F
Give the structural formulas of the alkenes that, on ozonolysis, give: a. (CH3)2C=O and CH2=O b. Only (CH3CH2)2C=O c. CH3CH=O and CH3CH2CH=O d. O=CHCH2CH2CH2CH=O
How do these factors hamper companies from doing business in India or setting up Indian e-commerce sites?
Will non-Indian companies like Amazon.com and eBay flourish in India? Explain.
Why are human resources and talent management so important at Steelcase?
i need help in B and C Integrative Case 5-72 (Algo) Cost Estimation, CVP Analysis, and Decision Making (LO 5-4.5.9) Luke Corporation produces a variety of products, each within their own division....
Relate PSA (Public Securities Association) speed to the average life of a MBS. Describe the PSA measure and discuss which MBS would have the greater average life, one with a PSA of 100 or one with a...
Which of the following statement about swaps is least accurate? A. In a plain vanilla interest rate swap, the notional principal is swapped. B. The default problem [i.e. default risk] is the most...

Why might a company hold low-yielding marketable securities when it could earn a much higher return on

Question:

Step by Step Answer:

A company might hold lowyielding marketable securities for several reasons 1 Liquidity Management Ma...View the full answer

Intermediate Financial Management

Students also viewed these Business questions