3/31/2005

Bonds up, dollar down

The article stated that the dollar is losing value and interest rates on bonds are increasing. This information seems like it should be used when making managerial decision on how much cash should be held by the corporation verses reinvested in other assets. The amount of cash a company has effect’s the market value of the stock. Do economic factors carry as much weight as the market value of their stock when making managerial decisions?
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1 comment:

Dr. Tufte said...

-1 on Kenny's post for no link.

Dealing with how economic events like this affect the cash positions of firms is a staple of MBA level corporate finance. People get paid a lot of money for managing this sort of risk.

8:49 PM

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