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Michael Dell serves up stump speech to settle sceptical investors

2Blockchainz

Interest accrued in debt is tax-deductible, so it can be a relatively cheap form of capital, especially during times such as these when interest rates are historically low.

What is crucial is the ability to erase that debt when advantageous to do so! Predictable, capital intensive firms typically find debt a cheaper form of capital than issuing of equities. Plus, Michael Dell won't dilute himself by issuing shares.

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