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To: Perseverando

Looking at it another way, let’s say that you were a business that was 20 million in debt. Your gross revenue annually is only 17 million and your gross profit is 3.5 million.

Your costs before net profit are:

To service your debt you have to pay 600,000 annually in interest to meet a 3% interest rate.

4 million goes to operational and employee expenses.

In short, you have zero profit, you have to borrow 1 million this year to keep going.

Next year your debt load is 21 million and the interest (pray the interest rate doesn’t rise) is 630,000.

How long will the bank let you keep doing this?

What do you need to do to turn it around?


8 posted on 01/13/2017 7:21:23 AM PST by xzins (Lord Jesus Christ, Son of God, have mercy on me, a sinner.)
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To: xzins

These are exactly the questions which I hope Trump and congressional Republicans will ask, and plan to deal with.


16 posted on 01/13/2017 7:46:55 AM PST by Dilbert San Diego
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To: xzins

The bank will let you continue so long as you continue to pay and are likely to for a few years to come.


27 posted on 01/13/2017 12:13:40 PM PST by ctdonath2 ("If anyone will not listen to your words, shake the dust from your feet and leave them." - Jesus)
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