0
Periods of High Inflation usually bring higher interest rates, and pressure to raise wages, and varying distortions to product input prices. They also make it more difficult to price one's own products. Companies that have trouble managing interest rates or those that hold high levels of output inventory would have difficulties in a higher inflation environment. Those that manage these aspects well should not have those issues. RichmondRob
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Is shareholder wealth maximization short term or long term?
Buying stocks is normally a long-term investment strategy. The idea is that since there is always inflation, the value of your stocks should go up with time.
What is inflation risk?
inflation reducing the value of investors' financial assets
What is better for the economy low inflation or high inflation?
Generally, low inflation is better for society because inflation has costs associated with the reallocation of assets and their value (that is, it costs money for people to change their decisions when inflation changes the value of their goods/services).
Advantages of inflation accounting?
An advantage of inflation accounting, is that it can correct problems with inflation. The negative part about inflation accounting is that it is not fair value accounting.
What do you think happens to the value of investments that grow slower than inflation?
If an investment grows slower than inflation, its real value decreases.
If the value of a share goes below what a shareholder paid for it the shareholder makes money?
No, if the value of a share goes below what a shareholder paid for it, the shareholder makes a loss. They would only make money if the value of the share increases above what they paid for it, allowing them to sell it at a profit. A decrease in share value results in a loss for the shareholder.
If the value of a share goes below what a shareholder paid for it the shareholder makes money.?
false
How do you maximize shareholder value?
The policy to maximize shareholder value implies that the shareholder should be consider first, and the primary reason to increase profits. Sadly, this is also a reason for increase in unemployment rates and cutbacks.
What is meant by The Social Desirability of Shareholder Value Maximization?
Is it good for the society, as a whole, for management of corporate resources to be focused on maximizing shareholder value? Or are there
Is shareholder wealth maximization short term or long term?
Buying stocks is normally a long-term investment strategy. The idea is that since there is always inflation, the value of your stocks should go up with time.
How do you create share holder value?
Shareholder value directly relates to increasing the value of the company through earnings, brand improvement and distributions of profits. To create or increase shareholder value a company needs to increase the direct and intrinsic worth of the company. Ultimately, with the idea to create a return on an shareholder's investment in the company/corporation.
Why did Germanys economy collapse in 1923?
The value of Germany's currency dropped and inflation soared. <---novanet answer
What is Letter of credit with svi?
SVI = Shareholder Value Increase
What is inflation risk?
inflation reducing the value of investors' financial assets
What is better for the economy low inflation or high inflation?
Generally, low inflation is better for society because inflation has costs associated with the reallocation of assets and their value (that is, it costs money for people to change their decisions when inflation changes the value of their goods/services).
How did inflation affected the Roman Empire?
inflation happens when money loses its value and it affected the Roman Empire.
Advantages of inflation accounting?
An advantage of inflation accounting, is that it can correct problems with inflation. The negative part about inflation accounting is that it is not fair value accounting.
