Where on earth are we going to borrow at 3 % ?   We can borrow from a bank , the gross interest rate will be something like 7 % . With corporate tax at say 30 % . We are only paying on 50 % of this . There is still inflation to consider .   You can knock off another 2 % for that .   We can borrow as much as we can .   Not quite , if we get too heavily in debt , the shares will tend to drop .   How much loan capital can we safely raise then ?   I would like to have notice of that question , I will give you an answer in a week . 