"For external source of fund it is looking for the cheapest long term source of finance, which does not dilute control of equity shareholders." Identify the external source of
finance that is used by the company for financing its new unit.
(a) Trade Credit
(c)Debentures
(b) Public Deposits
(d) Preference Shares
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Answer:
option c) Debentures.
As cheapest source of finance can only be Debentures. Others options are also cheapest source of finance but it is not normally used.
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