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how it wil effect the net income when a company borrows money
Hi sir please explain as to how it wil effect the net income when a company borrows money for expansion as in the below case?
If a Telecom Company borrows Rs.5,000 Crores for expansion, this will negatively affect the Company's ?
Nov 06 2012 07:58 PM
When a company borrows money, it has to pay interest expense. Interest expense is subtracted from revenue to arrive at net income and hence net income decreases due to interest when a company borrows money.
Nov 09 2012 08:39 AM
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