Question: As U . S . interest rates increase, the cost of firm capital increases for US firms and subsequently the present value of monies /

As U

.

.

interest rates increase, the cost of firm capital increases for US firms and subsequently the present value of monies

/

cash flows to be received in the future declines. Why are growth firms more adversely impacted by rising rates? If the Federal Reserve decides to change policy and lower rates, do you think this would be good or bad for growth stocks? Be sure to explain why.

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