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Question : Case Study 8:

JKL Ltd. is a real estate company planning to raise funds for a large-scale construction project.

Question :

To fund its construction project, JKL Ltd. is considering issuing long-term debt. What type of financial instrument might it use?

Option 1: Commercial paper
 

Option 2: Equity share
 

Option 3: Treasury bill

 

Option 4: Debenture


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Debenture


Solution : The correct answer is (d) Debenture

To fund its construction project, JKL Ltd. might consider issuing debentures, which are long-term debt instruments. Debentures are a form of long-term borrowing where a company issues bonds to investors, promising to repay the principal amount along with interest at a specified future date.


 

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