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I don’t think it is only that consideration

While Gross margins numbers are estimates vary widely, 40-60% numbers some analysts throw around seems realistic.

In an equity only company that is good enough metric , but all the major players have long since now transitioned to also raising debt.

The debt would need to be serviced even if fresh training investments stopped fully .

The cost of debt servicing would depend on the interest rates and the economy etc inaddition to the risk of the debt itself.

Quite possible that model companies would need to jack prices even with good gross margins to handle their debt load.



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