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    Exam 11: Optimizing and Financing Working Capital
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    The Theory That Excessive Cash Balances Lead Managers to Make
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The Theory That Excessive Cash Balances Lead Managers to Make

Question 32

Question 32

Multiple Choice

The theory that excessive cash balances lead managers to make bad decisions is called the:


A) agency cost of free cash flow.
B) excessive cash problem.
C) opportunity cost dilemma.
D) cash balance trap.

Correct Answer:

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