BORROWING COST

Question 1

WHAT IS THE NATURE OF DEBENCHERS LOAN?

Answer 1

DEBENCHERS ARE NOT EQUITY RATHER THEY CAN BE SPECIFIC OR GENERAL BORROWING

Question 2

IF THERE IS 1 SPECIFIC LOAN AND TWO QUALIFYING ASSETS THAN HOW THIS LOAN WIL BHE DIVIDED?

Answer 2

THE ONE WITH LARGER PAYMENT IS TAKEN FIRST AND ALL REMAINING IS GIVEN TO REMAINING ASSAT LIKE IN QUESTION 27, PAGE 358

Question 3

IF QUESTION IS SILENT ABOUT LOAN TYPE WHAT IS THE TYPE ACTUALLY?

Answer 3

READ INFO CAREFULLY WORDS LIKE EXISTING BORROWING AND LOAN IN PLACE AT THE BEGINING MAKE SILENT Q AS GENERAL BORROWING
IF EVEN AFTER YOU CANNOT DECLARE THEN ASSUME AS SPECIFIC

EXAMLES Q17 PAGE 354
Q16 PAGE 353

Question 4

ARE DEBENCHERS and preference shares euity sourse of finance

Answer 4

DEBENCHERS CAN BE SPECIFIC AND GENERAL BORROWING WHILE PREFERENCE SHARE IF THEY ARE REEDEMABLE THEY ARE LOAN AS WELL