Question
Debt is an important source of financial capital for households, companies, social impact organisations and governments. The associated interest expenses can be a significant fixed
Debt is an important source of financial capital for households, companies, social impact organisations and governments. The associated interest expenses can be a significant fixed cost. The associated financial leverage on the balance sheet can also add significant risk to equity (or wealth).
Imagine that you are an entrepreneur launching a new early-stage start-up. How could a deeper understanding of interest rates and their determinants help you to better understand the future purchasing behaviour of customers (whether consumers or businesses)? How might it affect your thinking about your own sources of finance for the business?
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