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re: Pelicans Value

Posted on 5/17/19 at 10:27 am to
Posted by Chad504boy
4 posts
Member since Feb 2005
167146 posts
Posted on 5/17/19 at 10:27 am to
quote:


Increased business value allows businesses access to more money, mainly banks. Basically an increase of value like this is like a future bet. They are speculating that getting Zion will lead to an increase in the value of the business, so the business can take out loans to try to reach or exceed their speculated value.

The business uses that money to reinvest in their business and thus further increase their productivity, their facilities, development...whatever. In the short term these reinvestments increase current revenue, easily covering the loan/interest and has the potential to further increase the business' overall value.

Basically an increase of business value this significant is like hitting the business lottery. If the reinvestments don't pan out, you cut back costs, but you use this opportunity to take your shot now.


you've literally answered nothing of my questions.
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