Corporate Finance: The Core, Student Value Edition Plus Mylab Finance With Pearson Etext -- Access Card Package (4th Edition)
Corporate Finance: The Core, Student Value Edition Plus Mylab Finance With Pearson Etext -- Access Card Package (4th Edition)
4th Edition
ISBN: 9780134426785
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Chapter 17.5, Problem 1CC

Is there an advantage for a firm to retain its cash instead of paying it out to shareholders in perfect capital markets?

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Students have asked these similar questions
Explain the theory behind the free cash flow valuation approach. Why are the free cash flows value relevant to common equity shareholders when they are not cash flows to those shareholders, but rather are cash flows into the firm?
Why might stockholders be indifferent to whetheror not a firm reduces the volatility of its cash flows?
Why might it be rational for a small firm that does not have access to the capital markets touse the payback method rather than the NPV method?

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Corporate Finance: The Core, Student Value Edition Plus Mylab Finance With Pearson Etext -- Access Card Package (4th Edition)

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Discounted cash flow model; Author: Edspira;https://www.youtube.com/watch?v=7PpWneOBJls;License: Standard YouTube License, CC-BY