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Which among the following issue will not bring in any fresh capital for the company?
- a)Debentures
- b)Bonds
- c)External Commercial Borrowings
- d)Shares
- e)None of the above
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which among the following issue will not bring in any fresh capital f...
A company can raise funds through the issue of debentures, which has a fixed rate of interest on it. The debenture issued by a company is an acknowledgment that the company has borrowed an amount of money from the public, which it promises to repay at a future date.
Companies need to raise money, issuing bonds is one way to do it. A bond functions as a loan between an investor and a corporation.
An external commercial borrowing (ECB) is an instrument used in India to facilitate Indian companies to raise money outside the country in foreign currency.
A rights issue(share) is a relatively common way for a company to raise fresh capital.
Hence, the correct option is (C).
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Which among the following issue will not bring in any fresh capital for the company?a)Debenturesb)Bondsc)External Commercial Borrowingsd)Sharese)None of the aboveCorrect answer is option 'C'. Can you explain this answer?
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