Read the following facts about shares and debentures.(A) Both shares and debentures can be issued by a company for raising long term funds.(B) Both shares and debentures can be issued for consideration other than cash.(C) Both shares and debentures can be issued at premium(D) Debentures can be converted into shares and shares can be converted into debentures(E) Dividend is paid on shares and debentures bothChoose the correct answer from the options given below:
- A(A), (B), and (C) Only
- B(B), (C), and (D) Only
- C(C), (D), and (E) Only
- D(A), (B), (C) and (D) Only
Solution & Step-by-step Explanation
Evaluating the statements:(A), (B), and (C) are correct facts regarding corporate financing rules.(D) is incorrect because while convertible debentures can turn into shares, standard equity shares cannot simply be converted back into corporate debentures.(E) is incorrect because interest is paid on debentures, while dividends are paid exclusively on shares.Thus, statements (A), (B), and (C) are the only valid facts.