For which of the following factors are the debentures more attractive to the investors?

A The principal is redeemable at maturity
B A debenture-holder enjoys prior claim on the assets of the company over its shareholders in the event of liquidation
C trustee is appointed to preserve the interest of the debenture holders
D All the above.

Correct Answer: All the above.

The principal is redeemable at maturity, A debenture-holder enjoys prior claim on the assets of the company over its shareholders in the event of liquidation and trustee is appointed to preserve the interest of the debenture holders are the factors why the debentures more attractive to the investors.
Bissoy MCQ
#Commerce #Financial Management

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