f the following is false? a. Baumol model helps firm to find out their desirable level of cash balance under certainty b. Any presence of a cash buffer affects the cost of holding cash and ultimately the annual cost of cash for a particular firm c. A higher average daily disbursement float than average daily collection float is more desirable for a firm d. Accounts payable increase the number of days a firm’s resources are t

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter23: Other Topics In Working Capital Management
Section: Chapter Questions
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Which of the following is false?

a. Baumol model helps firm to find out their desirable level of cash balance under certainty
b. Any presence of a cash buffer affects the cost of holding cash and ultimately the annual cost of cash for a particular firm
c. A higher average daily disbursement float than average daily collection float is more desirable for a firm
d. Accounts payable increase the number of days a firm’s resources are tied up in the operating cycle
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