Question

ABC Ltd is planning to modernise its plant with latest technology. The company is not having

sufficient money. The finance manager plans to arrange money for 3 years as after three years, the

company is expected a good return from their previous investment. The finance manager does not want

to spend flotation cost and do not want to approach stock exchange.

i) Suggest and explain the suitable source of finance in above case.

ii) How can company approach public without spending on flotation cost?​

Answer 1

Answer:

sufficient money. The finance manager plans to arrange money for 3 years as after three years, the

company is expected a good return from their previous investment. The finance manager does not want

to spend flotation cost and do not want to approach stock exchange.

i) Suggest and explain the suitable source of finance in above case.

ii) How can company approach public without spending on flotation cost