Cost of outside capital after tax

Cost of outside capital before tax

Determine the percentage of own income in relation to external funding.

Weighted cost of outside capital after tax

RateHub recently raised its first round of formal capital after seven years of bootstrapping.

The surge in outside capital generated strong GDP growth, but sharply widened external and internal imbalances.

Private sector investments and external capital flows have also declined.

In many cases, these companies have plenty of cash and easy access to external financing.

Higher intensity in the use of external funds tends to foster the development of domestic financial systems.

Net flow of external capital from all sources as % of GDP

We also have a healthy financial basis and we're not controlled by outside capital.

Finally, less favorable financial conditions would reduce external financing and put the brakes on growth.

The other way goes through a balanced mix of own capital and foreign capital, which must be reimbursed, but which constitutes the lowest possible risk.

Most of them are also generally hesitant to raise capital through the issuance of bonds – they just do not want to use their surpluses to pay for external capital.

Any cuts in refinancing rates are likely to discourage external capital inflow into the country.