How would financing be affected with inflation?

Question

Lamia Matoussi · Answer

Inflation is embadded in the interest rate calculation, and it is part of the cost of capital. and they are positively correlated

ATIF KHALIL · Answer

Interest rates are directly related with the rate of inflation, it means that finance expense increase as inflation rise.
Overall if I say that the Cost of Capital will increase with increase in inflation.

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How would financing be affected with inflation?

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