QUESTION 1 Motivations for a corporation to hold liquid assets include Bonal Portfolio Eaton mission on Board menes 1. To pay day-to-day bilis II. External finance is expensive III. To handle unexpected cash shortfalls IV. To avoid good invest opportunities CA and it Onland Oland ODS OLA of the bow ps Group QUESTION 2 What are possible reason(s) that can be used to argue that a corporation holds too much cash? Zaint up 1. Investment opportunities are very uncertain II. The corporation has a lot of debt so the cash is needed as a buffer to ensure debt repayment Ill. Cash cams a low retum and shareholders can invest the cash at a higher rate of return DAI Band 1 OCT and O. OE None of the above