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NB Ltd is India's largest manufacturer of cement. Its operations are spread throughout the country with 17 modern cement factories. It has a workforce of 9,000 persons. Since its inception, the company has been a trendsetter for the cement industry. The company is planning to grow in the long-run and wants to double its capacity in the next 3 years. For this the Finance Manager has to decide about the quantum of finance to be raised from various long-term sources. For this she/he needs to identify various available sources of funds and the proportion of funds from each source
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Question : 15
Total: 18
Identify the financial decision to be taken by the Finance Manager
Solution:
The Finance manager needs to make a financing decision in the context of a NB Ltd's capital structure which is a mix of long-term debt and equity that will be used for the business' operations. This is because NB Ltd plans to expand its capacity in the next 3 years and will require a mix of debt and equity financing depending on several factors
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