The Eurobonds are issued by financial firms to _________?
Correct answer: A. avoid taxes
- A. avoid taxes
- B. avoid interest hike
- C. avoid high floating rate
- D. avoid portfolio issues
Explanation
Eurobonds are issued outside the jurisdiction of the currency in which they are denominated, often allowing issuers to avoid certain withholding taxes and restrictive domestic regulations. This can reduce the overall cost of borrowing.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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