alleryStart learning →How do issuers keep commercial paper funding going for years?
AConvert maturing paper to equity
BRoll over with new issues
CIssue ten-year maturities
DRepay from retained earnings
Answer & Solution
Correct answer: B. Roll over with new issues
Individual issues are short, so as each matures it is replaced with a newly issued one under a rolling programme.
Keep practising Sources of Finance
Browse all Sources of Finance questions for CA Inter, or explore more Financial Management topics.
Related questions
What is the usual outcome at the end of a finance lease, as in hire purchase?Under operating lease treatment, what happens to leverage ratios?Under the IFRS approach, when is a lease a finance lease?How does capitalising a finance lease affect the balance sheet?Who is typically the legal owner of the asset during a finance lease?Historically, how have many IPOs been priced relative to market demand?In a Dutch auction IPO, what do all successful bidders pay?A greenshoe option usually lets underwriters raise the offering by up to what percentage?