Which of the following would be the most suitable financing method for the company?

A listed company with a growing share price plans to finance a four-year research project with debt.

The main criterion for the finance is to minimise the annual cashflow payments on the debt.

The research will be sold at the end of the project.

Which of the following would be the most suitable financing method for the company?
A . Bonds with warrants
B . Finance lease
C . Standard bonds
D . Bank loan

View Answer

Answer: A