What is difference in annual inflation rates

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1. Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = S0 $350 Last yr's accounts payable $40 Sales growth rate = g 30% Last yr's notes payable $50 Last year's total assets = A0* $360 Last yr's accruals $30 Last year's prof margin = PM 5% Target payout ratio 60% a. $78.7 b. $63.9 c. $67.0 d. $77.9 e. $91.1

2. Suppose the current exchange rate for the Polish zloty is Z 2.37. The expected exchange rate in three years is Z 2.62. What is the difference in the annual inflation rates for the United States and Poland over this period? Assume that the anticipated rate is constant for both countries. rev: 09_21_2012 3.38% 6.29% 5.61% 3.4% 4.93%

Reference no: EM131910368

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