Question

Mohit Ltd. wants to expand its production capacity by modernizing it plant and machinery
4 crores approximately. The company does not have enough reserves to support expansion
two sources of finance for the company.​
Please ​

Answer 1

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Answer 2

Answer:

To expand its production capacity by modernising plant and machinery, the company has to depend on long-term sources of financ. If the company does not have adequate reserve (i.e, retained profits ), it may rely on following sources: (i) Debentures (ii) Financial institutions (iii) Equity shares (iv) Preferencek shares. .