What impacts have on value of a business of high inflation
What impacts have on the value of a business of high inflation?
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Besides causing distortion (when it unequally influences each goods and services), inflation raises the uncertainty for companies and makes decision making many more difficult. Conversely, it generates increases in the present value of the taxes that are to be paid and reduces the value of the shares.
Regular meeting of day-to-day commitments: The estimation of WCR also helps to ensure that there is positive WC existence. This proves helpful in meeting requirements which are regular in nature such as payments of salaries, wages, rental charges etc.
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