Assume that inflation unexpectedly increases by 10 percent. Explain why a companys ROIC then needs to increase

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Assume that inflation unexpectedly increases by 10 percent. Explain why a company’s ROIC then needs to increase by more than 10 percent to preserve its shareholder value.

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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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Question Posted: Aug 12, 2015 02:26 AM

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Assume that inflation unexpectedly increases by 10 percent. Explain why a companys ROIC then needs to increase

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Valuation Measuring and managing the values of companies

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