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Effects of Inflation
The General Manager (GM) of a car dealership is working on a three year business plan. The GM expects inflation to rise over the next three years.
• How will higher inflation affect the number of vehicles the dealership can sell?
• Based on the GM's inflation expectation what type of loan should the dealership arrange with its bank in order finance its inventory of automobiles?
the effect of leverage on firm earnings a firm needs 100 to start and has the following expectations
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