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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Wiederbelebung Der Privaten Investitionstätigkeit ALS Wirtschaftspolitische Aufgabe. Finanzwirtschaftliche Planung in Der Unternehmung Bei Geldentwert

Wiederbelebung Der Privaten Investitionstätigkeit ALS Wirtschaftspolitische Aufgabe. Finanzwirtschaftliche Planung in Der Unternehmung Bei Geldentwert

Fels, Gerhard

Paperback

Series: Rheinisch-Westfälische Akademie Der Wissenschaften, Book 276

EconomicsInvesting & Finance

ISBN10: 3531082760
ISBN13: 9783531082769
Publisher: Springer Nature
Published: Jan 1 1978
Pages: 60
Weight: 0.27
Height: 0.14 Width: 6.69 Depth: 9.61
Language: German
The paper deals with the problem, how the profits of a firm are in- fluenced by inflation; some conclusions are drawn for the firm's invest- ment and financing policy. Profit is defined as the part of cash flow which may be distributed to owners without impairing the firm's real capital. For a firm with a positive profit stream under constant prices it is shown that inflation may cause negative profits, even if all prices rise with the same rate. This means that it is not sufficient for the preser- vation of real capital if rises in factor prices result in proportional rises of sales prices. This ist due to two effects: The first effect is caused by the necessity to hold cash and other monetary assets for current transactions; the growth of these assets, which is roughly proportional to the price level, has to be financed out of the cash flow thus reducing profit. The second effect is due to taxation; accounting profits are calculated on the basis of historical prices for inventories and depreciation. Financial plan- ning must take into consideration the effects of inflation and try to find counter-strategies. Further the analysis permits some conclusions on the value of the firm and the rate of return on shares. It is shown, that the rate of return on shares will be higher than the rate of inflation (i. e.

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