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Which retail store will go bankrupt?

Which retail store will go bankrupt?

19.August.2013, 20:35

Suppose that on the same street we have two retail stores (A and B) of the same size, some turnover and same number of employees.

Store A can borrow money very difficulty with an interest of 4% to 6% and always with collateral only.

Store B can borrow money with no collateral and an interest rate of about 0% to 1%. After some time, which of the two stores with go bankrupt?

Just to compare, imagine store A is one of the PIGS countries and store B is Germany...

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