Question
As CFO of the company, you have been asked to reduce the companys after-tax WACC and assure senior management that the company will have sufficient
As CFO of the company, you have been asked to reduce the companys after-tax WACC and assure senior management that the company will have sufficient liquidity for the next two to three years to allow it to continue to grow. Though you are clearly under orders to focus on this, you can time your work to achieve these goals over the remainder of the year. (Its March, so you have between 8 and 9 months left until year-end).
You hire an economist to advise you and you go see your companys lead banker where you meet with a senior officer in corporate lending.
You come away from all those meetings with a strong opinion that inflation is rising and will increase by 2% by the first quarter next year. And that corporate and individual liquidity will continue growing, keeping the banks very liquid.
Your company is doing very well from an operational perspective, as earnings per share appears to be growing at the rate of 3% per quarter.
What should you do and why
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