Madhav transportation Ltd. has good growth prospects. So, it is
planning to expand its business. For this the company needs
additional funds. The finance manager reports that the company
is not in a position to bear extra burden of paying any fixed
financial charges like interest or dividend. They do not want to
bear any flotation cost even. Also, the equity shareholders insist
not to issue further shares as there is risk of dilution of control.
a) Suggest the source of finance most suitable for Madhav
transportation Ltd.
b) Also, explain the merits of the source suggested in (a).
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