Question

The directors of a company have decided to set up a new plant at an estimated cost of rupees ten crore. State the sources of finance available along with their merits.

Answer 1

Setting up of a plant means fund are required for fixed assets and for a long-term. Various sources of long-term finance are :
1. Equity shares
2. Prefernce shares
3. Debentures
(Explain the merits of these securities.)