原版Reading 42练习第22题p418 because, equity, growing, company, comment

mp3bu

Holt is a growing company. In forecasting Holt’s free cash flow to equity growth rate I will not consider decreases in inventory as being a long term source of growth in FCFE.

22. Leigh’s comment about not considering decreases in inventory to be a source of long-term growth in free cash flow to the firm for Holt is :
A. inconsistent with a forecasting perspective.
B. mistaken because decreases in inventory are a use rather than a source of cash.
C. consistent with a forecasting perspective because inventory reduction has a limit, particularly for a growing firm.

inventory 减少，cash不是增加了吗?

apf薛老师

说的是long term source of growth in FCFE.存货减少可能是因为LIFO liquidation，这个是不可持续的