Assume a high-inflation scenario in which a manufacturing company does not grow in real terms, and maintains

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Assume a high-inflation scenario in which a manufacturing company does not grow in real terms, and maintains its inventory of raw materials constant relative to sales. Does the company need to invest in inventories or not, given no change in either sales volume or inventory volume? Give a nominal and real-terms example and discuss.
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Valuation Measuring and managing the values of companies

ISBN: ?978-0470424704

5th edition

Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel

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