Question
Which of the items below would be most affected by the announcement of an increase in expected inflation? a. the discount rate on the stock
Which of the items below would be most affected by the announcement of an increase in expected inflation?
a. the discount rate on the stock
b the cash flows from the stock
c. the risk of the stock
d. the time until the investor receives the cash flows from the stock
e. the interest rate on the stock
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
