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Should Sauce Borrow with Bonds?
OK, come back to The Sauce Company with this background and let’s talk turkey. That is, how much will The Sauce Company have to pay to borrow whatever money it wants? Banker Whiteshoe takes the lead here and explains that the basic idea is that the riskier the debt, the more expensive it should be (duh). So if The Sauce Company wanted to borrow $1,000,000, given its wonderful operating performance thus far, it is likely that amount would be priced at only a v...
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