This week we are discussing the complex interactions of the economy, interest rates, cost of capital for a company and the effect of all of these on...

This week we are discussing the complex interactions of the economy, interest rates, cost of capital for a company and the effect of all of these on the market value of firms.Our financial system is very much integrated and one thing affects the other (as we are witnessing now with the sub-prime mortgage fallout).How do you all see the effect of inflation in interest rates, the cost of capital for a company and ultimately how does this affect asset markets?word count is 300 to 400