So, ill throw my 2c in here...
As a company, you can either issue share capital to investors, where the cost of equity will be, the expectation on ROI.
Ill use 15% for this example, and this is post tax
OR
You can take on debt.
If you look at interest on a loan you'd be looking at 6-8% - note that interest paid on a business loan is tax deductible too.
So, as you can see, debt is cheaper than equity.
As a producer with serviceable cash flows debt is in fact your friend - provided repayments can be managed.
Earnings per share are retained due to no dilution, so this not only has a lower cost, but drives future value for shareholders.
Great decision by management also, as there would have been the alternative to park Flames well until we raised the funds in cash from earnings from Rangers.
This decision expedites Flames well, and it the best option to deliver value to shareholders.
My Opinion Only
DYOR & MYOD.
NFA etc etc
Happy trading
- Leezy
- Forums
- ASX - By Stock
- BRK
- Ann: Trading Halt
Ann: Trading Halt, page-100
-
- There are more pages in this discussion • 45 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add BRK (ASX) to my watchlist
|
|||||
Last
1.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $47.72M |
Open | High | Low | Value | Volume |
1.0¢ | 1.0¢ | 1.0¢ | $56.09K | 5.622M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
35 | 28328841 | 0.9¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
1.0¢ | 4480590 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
35 | 28328841 | 0.009 |
16 | 3979210 | 0.008 |
6 | 3507000 | 0.007 |
4 | 1585000 | 0.006 |
3 | 2308000 | 0.005 |
Price($) | Vol. | No. |
---|---|---|
0.010 | 4480590 | 3 |
0.011 | 36316610 | 23 |
0.012 | 17291476 | 28 |
0.013 | 21872569 | 20 |
0.014 | 11005309 | 14 |
Last trade - 16.10pm 23/08/2024 (20 minute delay) ? |
Featured News
BRK (ASX) Chart |
The Watchlist
SER
STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
David DeTata
Managing Director
SPONSORED BY The Market Online