As with the Freeport acquisition of Phelps Dodge, the Newfield deal was done with a lot of borrowed capital.
Before the arrival of angel-capital networks such as Rain Source Capital, small-town entrepreneurs typically borrowed capital from friends and family.
Before the arrival of angel capital networks such as Rain Source Funds, small-town entrepreneurs typically borrowed capital from friends and family.
Unlike leveraged buyouts in the U.S., where firms take over mature assets with borrowed capital, Sino-Gulf investors eschew debt, limit themselves to minority stakes and target companies that are still in formation.
America's saving rate has plunged, and consumer spending surged as homeowners borrowed with gusto against their capital gains.
For years, hedge funds borrowed money in Japan at next to nothing and employed the capital in the fixed-income sector here.
On the liabilities side, it has 900 of borrowed money (deposits and other borrowings), and 100 of equity capital.
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You can make up some of the gap of this lost capital with domestic savings, but the rest has to be borrowed at a price.
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For the poor, an investment is worthwhile only if its returns exceed the cost of capital, ie, the rate they must pay on money borrowed from the bank.
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For funding, he took capital from his headhunting operation and rolled it into StreetID, and he borrowed from family, friends, and a few small investors.
Consumers have borrowed more money against the rising value of their homes, allowing them to extract some of their capital gains and so spend more than their income: the saving rate has fallen from 9% in 1990 to minus 2% last year.
Even if the investment-trust company can find more capital, it will still have to pay back much of the 3.1 trillion won it has borrowed against investors' deposits by the end of this year.
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