In an inflationary environment, unevenly rising prices inevitably reduce the purchasing power of some consumers, and this erosion of real income is the single biggest cost of inflation. Inflation can also distort purchasing power over time for recipients and payers of fixed interest rates. The United States economy, similar to other world economies, is experiencing higher costs of borrowing after the Federal Reserve's increase in the Federal Fund's interest rate. This has in turn increased the cost of borrowing for consumers and businesses. Inflation has been a contributing factor to global financial crises. Companies raise capital using two forms of capital namely: equity and debt. Research recent international financial crises that affected a specific company or companies and the root causes. What am I looking for?  

Analyzing the company's experience with the financial crisis, and including how using the two forms of raising capital impacted the financial crisis.

Answer rating: 100% (QA)

One notable example of a financial crisis impacting a specific company due to inflation and borrowing costs is the 2008 global financial crisis and its impact on Lehman Brothers a major investment ban... View the full answer