Question
Gem Motors has no debt, and maintains a policy of holding $80 million in excess cash reserves, invested in risk-free treasury securities currently yielding 3%.
Gem Motors has no debt, and maintains a policy of holding $80 million in excess cash reserves, invested in risk-free treasury securities currently yielding 3%. If Gem has a 21% corporate tax rate, the cost of permanently maintaining this $80 million reserve is
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The Handbook Of Mergers And Acquisitions
Authors: David Faulkner, Satu Teerikangas, Richard J. Joseph
1st Edition
0199601461, 978-0199601462
