Ben-Zion, Uri2009-11-032009-11-031973-03Ben-Zion, U., (1973), "The Cost of Capital and the Demand for Money by Firms", Discussion Paper No. 27, Center for Economic Research, Department of Economics, University of Minnesota.https://hdl.handle.net/11299/54654The paper presents a simple model which incorporates the financial measure of cost of capital in the firms' demand for money. The model is tested using cross-section data of firms. The empirical results are consistent with the prediction and show the potential usefulness of the Modigliani-Miller cost of capital approach to resources allocation by firms.en-USWorking Paper