Rocky Mountain Int'l (OTC:RMIL former OTC:OVIS) Message Board

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Microcap & Penny Stocks : Rocky Mountain Int'l (OTC:RMIL former OTC:OVIS)

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To: steve johnson who wrote (26590)	12/12/1997 1:00:00 PM
From: Emec	Read Replies (1) of 55532

Steve, Incredible valuation theory! Never seen anything like it! Maybe I am just a dumb CPA but I never heard it said before that adding debt increases the value of the company, ie shareholders equity. I seem to remember from accounting for morons 101 that assets =liabilites + shareholders equity. If you add $5,000,000 in cash which is debt, assets and liabilites both go up and there is no change to shareholders' equite (value). If RMIL were to liquidate the day after they receive the $5,000,000, the debt holder gets the $5,000,000, not the shareholders. Just thought I would clarify that for you, even though I am a moron attorney/CPA according to this thread.

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