I have a game for you. Imagine you meet someone new who claims to be a "financial expert." If you could only ask them one question to determine if they are legit, what question would you ask? I call this the Financial Turing Test.
I think the latter business must increase it's working capital by more than the former in order to keep profits status quo. However, unless there substitutes to each industry, this advantage to the asset heavy business may be completed away. So I'm not sure. What's the answer?
-
-
Historically, inflation shocks helped asset heavy stock prices v asset light stock prices. But the question is not specified precisely enough to have a clean canonical answer--would look for clarifying assumptions as the actual effect depends on the businesses themselves.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.