Shares of Rs 250 issued, loan of Rs 250 raised, dividend Rs 1,200 and interest Rs 270 paid. Net financing flow is
AOutflow of Rs 970
BOutflow of Rs 1,420
CInflow of Rs 970
DOutflow of Rs 700
Answer & Solution
Correct answer: A. Outflow of Rs 970
250 + 250 - 1200 - 270 = -970, so financing shows a net outflow of Rs 970.
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