9 Views

Question : Conversion of debentures into equity shares by a financing company will result in inflow, outflow or no flow of cash.

Option 1: Inflow of cash

Option 2: Outflow of cash

Option 3: No flow of cash

Option 4: Cash and cash equivalents


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: No flow of cash


Solution : Answer = No flow of cash

No flow of cash conversion of debentures into equity shares at the time of redemption neither inflow nor outflow of cash. Conversion of debentures into equity shares does not involve any cash transaction; hence, it results in no flow of cash. It's a mere exchange of securities, impacting the composition of the company's capital structure without affecting its cash position.
Hence, the correct option is 3.

Related Questions

Chandigarh University Admissi...
Apply
Ranked #1 Among all Private Indian Universities in QS Asia Rankings 2025 | Scholarships worth 210 CR
MAHE Bengaluru BBA/ IPM 2025
Apply
Top Business School accredited by AACSB & AMBA | Ranked #4 by NIRF, NAAC A++ Accredited
TAPMI MBA 2025 | Technology M...
Apply
MBA Admission Open in Technology Management and AI & Data Science | NAAC A++ | Institution of Eminence | Assured Scholarships
Sanskriti University LLM Admi...
Apply
Best innovation and research-driven university of Uttar Pradesh
Maya Devi University LLM admi...
Apply
43.6 LPA Highest Package | 5.48 LPA Average Package | 150+ Courses in UG, PG, Ph.D
Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates, and judiciaries
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books