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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Ilaine who wrote (108746)6/14/2001 12:13:15 PM
From: Ken98  Read Replies (2) of 436258
 
Another reason for corp. borrowing that I am seeing more of recently is shortfalls in basic operating capital. Many growth companies even of the non-telco variety are experiencing shortfalls between expenses and cash in the bank.

<<My thought is that the null hypothesis would be that corporations borrow money because they are expanding production/expanding inventory/retooling, in the expectation that there will be increased future demand for their products and services.>>
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