Suppose that the rate of inflation accelerates from 5 to 10 percent per year. Would firms cash

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Suppose that the rate of inflation accelerates from 5 to 10 percent per year. Would firms’ cash balances go up or down relative to sales? Explain.

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 08, 2011 07:01 AM

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Suppose that the rate of inflation accelerates from 5 to 10 percent per year. Would firms cash

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Principles of Corporate Finance

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