Question : Case Study 4:
PQR Ltd. is a startup in the renewable energy sector looking to raise capital for its ambitious project.
Question :
PQR Ltd. wants to raise capital for its renewable energy project. Which type of instrument would be most suitable for this purpose?
Option 1: Commercial paper
Option 2: Equity share
Option 3: Debenture
Option 4: Treasury bill
Correct Answer: Equity share
Solution : The correct answer is (b) Equity share
Equity shares represent ownership in the company, and issuing equity shares can be a viable way for PQR Ltd. to raise long-term capital for its renewable energy project. Investors purchasing equity shares become partial owners of the company and may receive dividends as a return on their investment. Investing in renewable energy projects often involves long-term commitments, and offering equity shares aligns with the long-term nature and potential profitability of renewable energy ventures.
PQR Ltd. wants to raise capital for its renewable energy project. Which type of
PQR Ltd. is considering issuing bonds with a fixed interest rate and a maturity period
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