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QUESTION
Dividend Policy at Linear Technology Linear's cash holding of $1.552 billion in FY2002 is conservatively invested in short term debt securities....
Dividend Policy at Linear Technology
Linear's cash holding of $1.552 billion in FY2002 is conservatively invested in short term debt securities. Linear's estimated return on cash investment is 3.35% in FY2002 (interest income = $52m). Discuss the required return on Linear's cash investment.
Is Linear's cash investment (holding) likely to be positive, zero, or negative NPV investment? Provide justification for your answers.
