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A listed company is financed by debt and equity.

A listed company is financed by debt and equity.

If it increases the proportion of debt in its capital structure it would be in danger of breaching a debt covenant imposed by one of its lenders.

 

The following data is relevant:

  

 

The company now requires $800 million additional funding for a major expansion programme. 

 

Which of the following is the most appropriate as a source of finance for this expansion programme?

A.

Retained earnings

B.

Private placement of a bond

C.

Rights issue

D.

Bank overdraft

CIMA F3 Summary

  • Vendor: CIMA
  • Product: F3
  • Update on: Jul 29, 2025
  • Questions: 435
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