| Which of the following is not a source of finance for the redemption of debentures? |
Redemption out of profits Redemption out of capital The proceeds from the fresh issue of shares/debentures None of the above |
| None of the above |
| 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. |