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Money reducing debt

All debt contracts require payment of interest on the loan and repayment of the principal (either at the end of the loan period or amortized over the period of the loan). Interest payments are a fixed cost, and if a company defaults on these payments, then its ability to borrow money will be drastically reduced. Since interest is deducted from earnings, the greater the leverage of the company, the higher the risk to future earnings, and hence to future cash flows and the financial solvency of the company. In the worst case, the company could be declared bankrupt and the assets of the company sold off to repay the debt. Finance managers therefore carefully adjust the amount of debt owed by the company so that the cost of servicing the debt (the interest payments) does not place an excessive burden on the company. [Pg.361]

The account is in balance if your monthly pay in is as much as your monthly withdrawal. If you withdraw more than you pay in, sooner or later you will be in debt. If you pay in more than you withdraw, you make savings. In a way, the onset of cancer could be compared to a decrease in withdrawal from the bank account. If you still pay in the same amount of money every month, but you withdraw less, your savings will grow bigger and bigger. This obviously is similar to what happens in the cancerous cell - it produces the same amount of receptor, but reduces the degradation of the receptor-ligand pair. [Pg.16]


See other pages where Money reducing debt is mentioned: [Pg.193]    [Pg.131]    [Pg.118]    [Pg.18]    [Pg.1293]    [Pg.165]    [Pg.36]    [Pg.596]    [Pg.482]    [Pg.82]    [Pg.245]   
See also in sourсe #XX -- [ Pg.193 ]




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