Question: 5 . G Steel Ltd . ' is a large and creditworthy company manufacturing steel for the Indian market. It now wants to cater to
G Steel Ltd is a large and creditworthy company manufacturing steel for the Indian market. It now wants to cater to the Asian market and decides to invest in new hitech machines. Since the investment is large, it requires longterm finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expenses of floatation cost the company decides to tap the moneymarket. a Name and explain the moneymarket instrument the company can use for the above purpose. b What is the duration for which the company can get funds through this instrument? c State any other purpose for which this instrument can be used.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
