I THINK...this premium (last email) would amount to the interest rate on a
loan that an individual would borrow on above the interest rate a company
would borrow on, times the amount of money borrowed. Remeber, this would
be only if there were a shortage of levered shares (of different companies)
to choose from. Otherwise, competition eliminates this premium, which is
why people pay will buy the levered shares to begin with. Perhaps I'll see
this in the next chapter (18) anyway...we'll see.
Any comments?