Page 60 - DMGT207_MANAGEMENT_OF_FINANCES

Unit 3: Sources of Finance

4. Write short notes on: Notes
(a) Zero interest fully convertible
(b) Deep discount bonds
(c) Inflation bonds

(d) Sales tax deferments and Exemptions.
5. What are the advantages of lease financing?
6. "Is Trade Credit is source of working capital finance". Discuss.

7. Taking the example of the Indian corporate, analyse the importance of issuing the CPs for
the firm and to the investors.

8. Do you agree that lease is the efficient source of finance for corporates? How?
9. In your opinion, which is the best source of finance available to the firm for raising money
from the public?

10. You are starting your new company and wanted to raise capital from public. Analyse the
sources of finance available to you.

Answers: Self Assessment

1. 5-10 2. short-term

3. risk 4. public issue
5. common shares 6. direct
7. debt 8. Bridge finance
9. unsecured 10. conditional

11. Income note 12. financial
13. Operating 14. IDBI
15. backward

3.11 Further Readings

Books Chandra, P., Financial Management – Theory and Practice, New Delhi, Tata McGraw
Hill Publishing Company Ltd., 2002, p. 3.
Dr Pradeep Kumar Sinha, Financial Management, New Delhi, Excel Books, 2009.
I.M. Pandey, Financial Management, 8th Edn., Vikas Publishing House Pvt. Ltd.
Lawrence J. Gitman, Principles of Managerial Finance, 10th Edn., Parson Education.

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