External debt

External debt is more risky than internal debt. If needed, sovereign governments can generally raise taxes or print money to service their internal debt. A shortage of external currencies can be more dramatic. This can be seen in the credit ratings delivered by agencies. 

Capacity for financing as indicated by present external debt as % of GNP the cost of servicing debts as % of exports of goods and services also by the total GNP, as energy sector investments normally fall in the range of 2-3% of GNP, with electric system investments at a maximum half of this. 

Capital Investment. Erom the viewpoint of a project, all of the capital that must be raised is external capital. Equity capital is the ownership capital, eg, common and preferred stocks or retained cash, whereas debt capital consists of bonds, mortgages, debentures, and loans. Nearly all investment involves a mixture of both types so as to maximize the return on investment (21). The debt ratio (debt/total capital) for the chemical industry is typically over 30%. Because financial details are not well known during the preliminary phases of project analysis, the investment is viewed simply as the total capital that must be expended to design and build the project. 

The existence of a heat sink owes a debt to the heat exchange with the external environment on the lateral surface of the bar. The quantity is equal to the amount of heat being supplied to the segment ... 

Target external funding - grants, loans, donations -at specific diseases with high public health impact Explore other financial mechanisms, such as debt relief and solidarity funds Reliable supply system... 

The existence of a heat sink owes a debt to the heat exchange with the external environment on the lateral surface of the bar. The quantity is equal to the amount of heat being supplied to the segment xi. l/2 < x < xi+1/2 through the cross-section x = xi 1 j2, while wi+1/2 refers in a similar fashion to the heat transfer from this segment through the cut x = xi+1/2. The third member on the left-hand side of (11) reflects the amount of... 

In the debt system, there is essentially only the banker to answer to. Normally, in Japan, he will be more close to and understand the business. As long as his investment is generating proper interest, his external pressures will be minimal. 

Equation (2.1) shows an incentive for shareholders to substitute equity by debt to increase the company s value As interest on debt often is less than interest on equity, the substitution of equity by debt reduces the discount rate of the cash flows. Additionally, debt has a tax advantage unlike dividends expenses on debt diminish income. Moreover, external financing through a rights issue can be interpreted as a signal that management considers the share price as overvalued. In most cases the share price drops after the announcement of a rights issue. ... 

Emerging debt can be issued either in the local currency or in any other external currencies (i.e., Mexico issuing in euro or sterling). These two types of debt do not carry the same risk, and need to be modeled independently. Internal risk was discussed in the interest risk section and we will now address external risk. 

Failure costs rework and bad planning, nonproductive times by errors in production, time to examine the causes and consequences of failures, lack of work and accidents, obsolete resources, deficient utilization of resources and external services, delays of supplies, inefficient communication and affections in computer systems, contract errors, bhhng errors, loss of income, imcollectable debt, discounts of fees, customer complaints, time consumed in internal complaints and solving the problem escalated by customer, penalties, loss of market and company reputation. 

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