Start Principle of self liquidating debt

Principle of self liquidating debt

Furthermore, the basic question pertaining to returns analysis is whether or not the use of credit generates adequate income and is most profitable use.

1 Estimate the gross returns by multiplying average yields with its corresponding expected average prices, the conservative prices should be used for safety purpose.

These gross returns should be worked out both with and without borrowed funds.

It should also be taken into consideration while extending/borrowing a loan.

The word “credit” comes from the Latin word “credo” which means “I believe”.