[speaker001:] Where on earth are we going to borrow at 3 %?
[speaker002:] We can borrow from a bank, the gross interest rate will be something like 7 %. With corporate tax at say 30 %. We are only paying on 50 % of this. There is still inflation to consider.
[speaker001:] You can knock off another 2 % for that.
[speaker002:] We can borrow as much as we can.
[speaker001:] Not quite, if we get too heavily in debt, the shares will tend to drop.
[speaker002:] How much loan capital can we safely raise then?
[speaker001:] I would like to have notice of that question, I will give you an answer in a week.