• If the debt is not properly applied to variable projects, it accumulates to become a drain on the country’s resources.
• Foreign debt can drain the country’s foreign exchange reserves hence adversely affecting the exchange rates.
• Excessive government borrowing leads to an increase in local interest rates where financial institutions increase their lending rates.
• If the debt is contracted recklessly, it quickly becomes a burden to the citizen.
• Sudden capitals in-flight and debt financing can lead to currency crisis, which causes uncertainty and instability for business and adds to inflationary pressures.
• Loss of control over economic decision making, which is economic dependence.
Kavungya answered the question on May 6, 2022 at 06:06
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The company’s current dividend yield is 5% which is expected to continue in the near future.
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Required:
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Additional Information:
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rate was 50% or Sh.3 per share. For the year ended 30 November 2003, the EPS declined to
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Required;-
The share price of the company which might be expected by the market
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