Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Telstra issues shares to Mr Strachan, in order to build a new communication tower. Which of the following statements is correct? A. The process is

Telstra issues shares to Mr Strachan, in order to build a new communication tower.

Which of the following statements is correct?

A.

The process is unambiguously indirect finance.

B.

The process is direct finance only if Mr Strachan and Telstra are depositors at the same bank.

C.

The process is direct finance if Mr Strachan has bought the shares with the part of his wage that he has not spent on consumption and real assets.

D.

The process is direct finance if Mr Strachan did not borrow the money used for the purchase of the shares.

E.

Both C and D are correct.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Globalization Gating And Risk Finance

Authors: Unurjargal Nyambuu, Charles S. Tapiero

1st Edition

1119252652, 978-1119252658

More Books

Students also viewed these Finance questions