Investment bank Canaccord's Think Childcare (TNK) initiation of coverage states:

"Building lease costs Rent expense is the second largest cost and TNK reported rent/sales of 12.1%, within the industry range that we typically see as 12-14% of sales. TNK lease all their properties and do not intend to own property. Leases are generally long term with 10-15 year terms and additional options. Although terms vary across properties and landlords, rental increases are generally tied to the consumer price index"

Assuming that inflation is positive, TNK's building lease costs (measured in dollars) are likely to:

Select one:

a.

Be constant in real terms.

b.

Grow in real terms.

c.

Shrink in real terms.

d.

Be constant in nominal terms.

e.

Shrink in nominal terms