What impacts have on value of a business of high inflation
What impacts have on the value of a business of high inflation?
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Besides causing distortion (when it unequally influences each goods and services), inflation raises the uncertainty for companies and makes decision making many more difficult. Conversely, it generates increases in the present value of the taxes that are to be paid and reduces the value of the shares.
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A financial consultant obtains various valuations of my company when this discounts the Free Cash Flow (FCF) as opposed to when this uses the Equity Cash Flow. Is it correct?
What is the expected return for a portfolio consisting of 200 shares of Nike, 200 shares of Home Depot, and 400 shares of Intel if their expected returns are 10%, 8% and 12% respectively, and their current prices are $25, $50, and $25 per share respec
Marketing Decisions Assignment: Email the answers to the following questions in an attached word document using the proper file name format as follows: 1
The market risk premium is the difference between the historical return on the stock market and the return on bonds. But how many years does “historical” imply? Shall we use the arithmetic mean or the geometric one?
XY Corporation is an all equity firm with a total value of $20 million. It needs an additional capital of $5 million, which may be either equity, or debt at the interest rate of 10%. After the new capitalization, the expected EBIT is $5 million, with standard deviatio
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I think Free Cash Flow (FCF) can be acquired from the Equity Cash Flow (CFac) using the relation as: FCF = CFac + Interests – ΔD. Is it true?
Is this true that the cost of its equity is zero, if a company does not distribute dividends?
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