If suppose the value of a firm was calculated by estimating an inflation of 20% and the total firm value comes out to be 2175 million. Now say, we increase the inflation forecast from 20% to 30% and recalculate the value of the firm, which now comes out to be 300 million lower. My question is - why does the increase in inflation forecast reduce the firm value? To be more precise - Please refer to emerging markets page 145 (question 9). They tried to explain the cause on page-148 in 2 bullets. But I did not get them at all!
i could try to answer this, but i will have to charge you 1,000,000,000,000,000 zimbabwean dollars.
Do you have a paypal account?