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Question 4 (10 points) Which, if any, of the following is an argument for a firm to keep cash on hand that it doesn't need

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Question 4 (10 points) Which, if any, of the following is an argument for a firm to keep cash on hand that it doesn't need immediately? a) Information Asymmetry 9 b) The agency problem between managers and stockholders. 12 c) Risk Preference 15 Question 5 (10 points) The presence of debt in the capital structure of the firm can cause: a) Bankruptcy b) Myopia Underinvestment d) Excessive Risk-taking e) Lower taxes

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