The existing net working capital of a firm was ₹12,04,000. It repaid its creditors worth ₹1,40,000 by issuing them 3 year bonds and acquired a 5 year loan of ₹3 Lakh. Further, it redeemed its 8% debentures worth ₹2 Lakh
CS Executive · Financial and Strategic Management · PYQS · June 2022
The existing net working capital of a firm was ₹12,04,000. It repaid its creditors worth ₹1,40,000 by issuing them 3 year bonds and acquired a 5 year loan of ₹3 Lakh. Further, it redeemed its 8% debentures worth ₹2 Lakh by issuing 9% preference shares of equal amount. Which of the following is correct in the light of this information ?
Answer & Explanation:
Correct Answer: Option (D)
Official answer key: (D).
Topics: Financial Management
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