Tag: Dittmar and Mahrt-Smith
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How will the decision change if the current value of a leather bag company is £35.6 million instead of £40.4million?
SECTION A Answer ONE question from this Section Question 1a)Explain the three theories of cash holdings including: trade-off theory,pecking order theory and agency conflict theory. (30 marks) b)Based on the empirical evidence in Faulkender and Wang (2006) and Dittmar and Mahrt-Smith (2007), discuss the relationship between the value of cash holdings and corporate characteristics, including…