OT.
Been meaning to get back to you on your post "Re KMI".
You stated ... "you estimate if debt costs is certainly wrong"
I'd be appreciative, and certainly interested, if you could maybe elaborate on where or why the debt costs are wrong.
As I alluded to in a previous post (#53601) "your insight into the MLP business model very likely exceeds mine".
I've never involved myself with MLP's, so I've never studied their intricacies.
What I did, at the time, was to look at several of KMI's Income Statements to ascertain what Bottom Line they were producing relative to their Gross Revenue.
Here's the example of what I saw at the ADVFN web site ...
The Annual statement for 2012/12 shows an "Interest Expense" of $1427mil. and an "EBIT" of $2770mil. giving a reduction of EBIT of 48.5% (and also represents ~36% of its EBITDA).
Now if $1427mil. is not an "Interest Expense", according to that label, but rather some other Expense not related to Debt as one usually sees it, the fact of the matter appears to be that EBIT is still reduced by that amount, and concurrently so will its Bottom Line also be negatively affected.
If that is the norm for MLP's then so be it.
If the reduced Bottom Line and its addition to the Balance Sheet is not where the attraction of an MLP lies, then so be it.
You mentioned that "These entities pay distributions ranging from 8-9% currently".
Does that distribution rate, i.e. Dividend Yield ?, display what KMI has declared ?
From what I saw at Yahoo below it seems their latest Yield was 5.1%.
Needless to say, based on the return that one can get in today's financial market, 5.1% is still good.
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