Borrowing by the company itself and being able to fund investments at less than market cost.
FORBES: Explaining The Secret Of Warren Buffett's Success: Double Leverage
Used to be that a company borrowing to cover payroll or an inventory buildup would get a 12-month bank loan backed by tangible assets.
Awesome as the hydrogen ambitions may be, they aren't an overwhelming capital expense, even for a company whose borrowing costs are rising rapidly and whose equity marketing capitalization has declined by nearly two-thirds in six years.
Here too there is no argument, Apple was near bankrupt when he took it over and he was willing to do whatever it took to save the company even borrowing money from Bill Gates which had to be incredibly difficult. (Interesting thing is if you look back at the quotes from Bill Gates of Steve Jobs they are generally very positive).
Most of Oracle's 15, 000 developers now work on new software, borrowing the best features the company acquired.
"Declining investor participation means reduced capital and liquidity, which may affect homeownership and borrowing opportunities, " the company said.
They want borrowing powers, control over company taxation (perhaps with a view to a tax-cutting strategy) and control over the Crown Estate in Scotland (which has implications for what goes on in coastal waters and harbours).
So by borrowing money at the holding company level at, say, 10% pretax, Catacosinos and his investors can put it to work earning 125 basis points more, aftertax, at the operating company level with nary a risk.
Bankruptcy sooner or later has to occur when an individual, company or government keeps borrowing more then they can pay anytime soon.
From the very beginning SIRI put itself in a hole, borrowing huge sums just to get the company off the ground.
FORBES: Stock of the Week: Howard Stern, Oprah, Beating Drum For Sirius
When he left college he worked briefly for a telecoms company, but, after borrowing money from his father five years ago to purchase a good camera, he began taking wedding photographs.
And second, by borrowing the money from your credit-card company to pay off your mortgage, you free up your savings for other potentially lucrative investments.
Undeterred, he started maxing out credit cards and borrowing cash to start a new "worm poo" company.
According to OFII, the foreign investment estimates include equity capital, reinvested earnings and inter-company debt (U.S. subsidiaries borrowing from foreign parent companies).
The company took decades and large amounts of capital and borrowing to establish its vast operational capability.
FORBES: Why Venture Capital Is Weak Fuel For Clean Energy Startups
It is, in reality, no different from an investor borrowing money from a bank and making a successful investment in a company that is sold for a profit three years later.
Seeing their own capital base eroded and their borrowing costs soar, banks are far less willing to lend to any company that is faintly risky.
Additionally, if a company is perceived to own very valuable assets, that might enhance borrowing capacity too.
This can cause a company to locate more of its borrowings offshore, which can increase borrowing costs.
FORBES: Territorial Tax Proposal Provides a Look into the Future of Corporate Taxation
No amount of financial tinkering, however, can hide the fact that the Post Office, whether a minority stake is sold or whether it is turned into an independent public company, will still be subject to the government's rules on borrowing.
When the economy is buoyed by too much borrowing, when those bills come due to every American household and to every American company that has been making a profit on irrational spending based on irrational lending, which, you know, which happen all over the place over the last several years, it's going to hurt people.
During that time, the company began enticing wholesalers to buy more than they needed, increasing current profits by borrowing from the future.
But the company's "junk" credit rating has impeded its fundraising to the point that it has difficulty borrowing at rates that make the loans profitable.
应用推荐