Where on earth are we going to borrow at 3 %?
We can borrow from a bank, the gross interest rate will be something like 7 %. With corporate tax at say 30 %. We are only paying on 50 % of this. There is still inflation to consider.
You can knock off another 2 % for that.
We can borrow as much as we can.
Not quite, if we get too heavily in debt, the shares will tend to drop.
How much loan capital can we safely raise then?