Business Studies, asked by thakurpayal131, 7 months ago

4. IPL Limited is a company that published books. Company want to expand


business. Along with Publication company want to do printing job as well.

Company required rupees 50 crore for this purpose. It has decided to mobilize

this amounts through capital market. Company undertook intensive study of

the capital market. In the meanwhile it is observed that market was passing

through boom period and in this situation investors give priority to invest in

equity shares so as to earn large profit. Company therefore considered it

proper to issue equity shares. To invite the general public prospectus was

prepared and other procedures regarding the flotation of capital initiated.

Beside company realise that on one hand share flotation cost are likely to rise

very much and on the other hand its cash flow position is not favorable. He

also apprehends that this situation with continue for about 6 months. Thus for

the next six months some additional funds will have to be collected. In order to

mobilise this funds company deemed it proper to depend on money market

instruments

Identify the method of flotation of capital as mentioned in the above paragraph

Beside above share issue methods explain two other methods

Use of what kind of instrument will be appropriate of money market. Clarify​

Answers

Answered by harikachph123
0

Answer:

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