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Shubham Ltd. had decided to expand its production capacity by modernising its plant and machinery at an estimated cost of Rs. 2 crore. It does not have adquate reserve to finance the expansion. Suggest any four sources of finance for the company. |
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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. . |
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