Discussion Forum : Financial Management
Question -


According got you, which is the cheapest source of finance?

Options:
A .   Debentures
B .   Bonds
C .   T-Bill
D .   Commercial Paper
Answer: Option A
:
A

Debt instruments like debentures, long-term loans, etc prove to be the cheapest source of finance since interest paid on them is a tax-deductible expense.



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