#Person1#: Where on earth are we going to borrow at 3 %?
#Person2#: 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.
#Person1#: You can knock off another 2 % for that.
#Person2#: We can borrow as much as we can.
#Person1#: Not quite, if we get too heavily in debt, the shares will tend to drop.
#Person2#: How much loan capital can we safely raise then?
#Person1#: I would like to have notice of that question, I will give you an answer in a week.
#Person1# and #Person2# discuss the interest rate and the loan capital of borrowing money.
borrow money