Which of the following is not a source of finance for the redemption of debentures?
Answer & explanation
Correct answer: option 4
Redemption of Debentures is the reimbursement of the amount due to the debenture holder at its maturity. The Redemption includes a refund of the principal amount along with the amount of interest due on it. The sources of finance for the redemption of debentures are redemption out of profits, redemption out of capital and proceeds from the fresh issue of shares/debentures.