No products in the cart.

Merits of debentures

CBSE, JEE, NEET, CUET

CBSE, JEE, NEET, CUET

Question Bank, Mock Tests, Exam Papers

NCERT Solutions, Sample Papers, Notes, Videos

Merits of debentures
  • 2 answers

Rattandeep Singh 5 years, 2 months ago

1) Investors who want fixed income at lesser risk prefer them. 2) As a debenture does not carry voting rights, financing through them does not dilute control of equity shareholders on management. 3) Financing through them is less costly as compared to the cost of preference or equity capital as the interest payment on debentures is tax deductible. 4) The company does not involve its profits in a debenture. 5) The issue of debentures is appropriate in the situation when the sales and earnings are relatively stable.

Kanhaiya Kumar 5 years, 2 months ago

1st long term loan 2nd small loats loan 3rd. Tax advantages
http://mycbseguide.com/examin8/

Related Questions

Explain the need for outsourcing
  • 0 answers
What do you understand by SVA Analogy
  • 0 answers
Who is a secret partner?
  • 3 answers

myCBSEguide App

myCBSEguide

Trusted by 1 Crore+ Students

Test Generator

Test Generator

Create papers online. It's FREE.

CUET Mock Tests

CUET Mock Tests

75,000+ questions to practice only on myCBSEguide app

Download myCBSEguide App