Why is too much liquidity not a good thing


Please discuss the given topics:

Question 1. Why is too much liquidity not a good thing?

Question 2. Why is the ROE a more appropriate proxy of wealth maximization for smaller firms rather than for larger ones?

Question 3. Why is it not enough for an analyst to look at just the short-term and long-term debt on a firm's balance sheet?

Please use Financial Decision Making for Managers by Parrino & Kidwell.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Why is too much liquidity not a good thing
Reference No:- TGS02054740

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)