Question: We have been having a low-interest-rate environment for a few years, which has led to a lower cost of capital for businesses. As the interest

We have been having a low-interest-rate environment for a few years, which has led to a lower cost of capital for businesses. As the interest rates rise over the next few months, what do you think will happen to the general valuations of businesses? Explain your answer in the context of the class discussion related to profitability vs. growth. Note: Consider only the interest rates change in your analysis and assume all other market factors as neutral, i.e. assume other factors do not have a significant effect on the valuations

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