Saturday, January 29, 2011

Nominal forecasts of firm performance under a high inflation

Nominal forecasts of firm performance under a high inflation
Nominal
Return on invested capitalNI / (D+E)NI / (D+E) ; ↑ : overstated 
Net working capital to revenuesNWC / RevenueNWC / Revenue ; correctly estimated with either real or nominal projections.
Net property plant and equipment to revenuesNet PP&E / RevenuesNet PP&E / Revenue↑ ; understated

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