An Example of an Indirect Form of Funding Is A/an

question 43

Multiple Choice

An example of an indirect form of funding is a/an:

• A) issue of debentures.
• B) issue of unsecured notes.
• C) term loan.
• D) issue of shares.

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Definitions:

After-tax Cost

The actual cost of an investment or loan after accounting for the impact of taxes on the return.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Operating Lease

A rental agreement allowing a company to use an asset without owning it, typically involving shorter terms and cancellable by the lessee.

Short-term Lease

A leasing agreement that typically lasts for a relatively short period of time, usually less than a year.