Rediff.com |  Feedback  
You are here: » Rediff Home » Discussion Boards » Permalink
  
View : Single Message | Complete Thread | Read complete Discussion
Ha!
by Shidhil K on Apr 18, 2007 03:53 PM   Permalink

If you look at the financial figures of last five years, the company recorded lowest profit while it was under huge debt, the additional income generated if not some thing that out weights the money needed to repay the debt and the interest on it. Now company is in a narrow level of debt and the perfomance in this situation is surprisingly good.
By funding through debt, you are agreeing to pay out the interest on it i.e, a part of the profit you have made with that investment, with the required magnitude of funding requirement, the amout required to pay interest may surpass the additional revenue/income you create with it.

    Forward  |  Report abuse
The above message is part of the Discussion Board:
Win Rs 25K. Just solve this case