Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If You Use a Screen Reader

This content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.

Sustainable Growth under Inflation

Robert C. Higgins
Financial Management
Vol. 10, No. 4 (Autumn, 1981), pp. 36-40
Published by: Wiley on behalf of the Financial Management Association International
Stable URL: http://www.jstor.org/stable/3665217
Page Count: 5
  • Read Online (Free)
  • Subscribe ($19.50)
  • Cite this Item
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Sustainable Growth under Inflation
Preview not available

Abstract

This companion paper to the Johnson paper points up some differences between the two authors, with this paper framing the question as: What impact does inflation have on real sustainable growth when leverage is measured in an economically meaningful way? In the presence of inflation, use of historical cost debt-to-equity ratios as measures of leverage is illogical. If managers and creditors understand inflation, they must conclude that uniform inflation has no effect on real sustainable growth.

Page Thumbnails

  • Thumbnail: Page 
36
    36
  • Thumbnail: Page 
37
    37
  • Thumbnail: Page 
38
    38
  • Thumbnail: Page 
39
    39
  • Thumbnail: Page 
40
    40