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Essentially the broader range of customers the better there pricing can be because of the affects associated with economies of scale and capital efficiency is achieved through the use of debt and equity capital (capital invested). Cost efficiency is enhanced by low cost, effective distribution and enables competitive pricing. Capital efficiency is achieved by optimising the use of debt and equity capital. By growing and improving the mix of higher margin products (those products which will produce high yields) “Northern Rock aims to grow earnings and improve returns to shareholders, at the same time as providing innovative customer friendly products to our customers...
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