a. Briefly explain two primary reasons for a firm to hold cash. (4 marks) b. A firm's weekly average cash balances are as follows: Week 1 Week 2 Week 3 Week 4 RM24,000 RM34, 000 RM10,000 RM15,000 nual interest rate is 12 percent, how much return can be earned on the average (5 marks) cash balance? c. Using appropriate example, distinguish the lead and lag strategies. (6 marks) d Classity whether the following actions INCREASE, DECREASE, or CAUSE NO CHANGE to cash. This year's tax liability is increased. Marketable securities are purchased with retained earnings. A sale is done based on the term 3/15, net 30 100,000 of new company shares floated in the open market. Raw material is purchased on credit (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) iv. V. TOTAL 25 MARKS