help me with my accounting assigmnet :'(

[nviita]

hey everyone, can you all please help mew and give at least your opinion about my accounting assigment ?
the question is quiet complicated.. --"

"Assets can be funded by debt, and the cost of debt is interest. If interest rate is falling but credit is scarce as in the current climate, what are the implications for shareholders?"

i've got some opinion like :
Being able to take out a loan prove that it is profitable since it can be implied that it has a strong credit rating. and due to lower interests, cost of servicing the loan is less.

please help me 
thx GBU

[abcdqdxD]

I think that is out of the scope of the Study Design but some implications on the FIRM are:

- Lower interest rates make loans from financial institutions a more attractive source of external finance for businesses as discount expense incurred by the business will be lower, hence this will be favourable for the profitability of the firm

- Scarce credit would lead to stricter requirements for finance. Firms must be able to demonstrate that they are indeed able to repay their debt as they fall due. Hence, the liquidity of the firm will be assessed by financial institutions before making a decision to provide finance. Firms must have a good credit history to show that they repay their debts on time.