Economics WAEC

When interest rates are high and still rising the least-cost method used by public limited companies to obtain additional funds for their operations is by?

A. obtaining life-term loans from merchant banks
B. obtain short-term loans from commercial banks
C. selling floating-rate debenture stocks to the general public
D. selling new ordinary shares to the general public

Correct Answer:

Option D – selling new ordinary shares to the general public

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