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which debt instrument is prefered by the campany for
financing?
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Answer Posted / anjali
debt instruments are generally preferred because debt is
cheaper source of capital and as its interest is not taxable
so it provides shield against income tax.the various sources
of debt instruments are
a notes
b bills
c Commercial paper
d mortgages
e leases
f bonds
the most perfered instrument is bonds.
| Is This Answer Correct ? | 3 Yes | 1 No |
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