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To: Oeconomicus who wrote (1461)2/5/1998 5:05:00 PM
From: igor  Read Replies (2) | Respond to of 164684
 
I agree, losses will increase if they enter the CD business. Margins are lower, competition is greater and because unit prices are smaller, the handling cost per unit sold will increase. Inventories will have to be carried, etc. etc.

igor



To: Oeconomicus who wrote (1461)2/5/1998 5:21:00 PM
From: Don Westermeyer  Respond to of 164684
 
Bob,

Yes, that extra half percent will knock a couple cents off earnings!

Actually that loan costs them about $850m/Q, assuming they borrowed it at 9% and probably have most of it in a 5% interest bearing account.