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NEW QUESTION: 1
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If it increases the proportion of debt in its capital structure it would be in danger of breaching a debt covenant imposed by one of its lenders.
The following data is relevant:
The company now requires $800 million additional funding for a major expansion programme.
Which of the following is the most appropriate as a source of finance for this expansion programme?
A. Private placement of a bond
B. Rights issue
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D. Retained earnings
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D. MoV processes being followed
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A. True
B. False
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