A leading company decides to raise fund. It decides to go for debt as the source of finance. The reason behind this choice is the possibility of losing management’s holding in the company, if equity is issued. The company already has been using equity as a source of finance during last couple of years. Therefore, it decides to issue a document stating that the company has borrowed a certain amount of money, which it promises to repay at a future date. Public issue of the above-mentioned document requires the issue to be rated by credit rating agencies. *
A) Preference share
B) Loan from financial institutions
C) Debentures
D) Loan from commercial bank
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