Which of the following is the most appropriate as a source of finance for this expansion programme?

A listed company is financed by debt and equity.

If it increases the proportion of debt in its capital structure it would be in danger of breaching a debt covenant imposed by one of its lenders.

The following data is relevant:

The company now requires $800 million additional funding for a major expansion programme.

Which of the following is the most appropriate as a source of finance for this expansion programme?
A . Retained earnings
B . Private placement of a bond
C . Rights issue
D . Bank overdraft

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Answer: C