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Re: krays post# 1948

Thursday, 09/25/2008 4:00:55 PM

Thursday, September 25, 2008 4:00:55 PM

Post# of 8575
not for nothing, but have you guys ever run a biz? i'm not trying to be obnoxious, i'm just asking. how can you assume that just cuz a biz does $8 mill in sales it has the resources to retire a couple of million in debt by writing a check? how does that work? if the company hypothetically made 500k profit on the $8 million in sales, it would then pay taxes of 150k or so, leaving 350k in free cash flow. assuming that they decided to reinvest NOTHING in the biz, so the biz wouldnt grow, it would still take 5 years or so to retire the debt. So what exactly are you talking about when you say that they could pay off the debt, but choose not to? makes no sense to me.