Chapter D, Problem 5BTN

To determine

Concept introduction:

Expansion financing can be defined as capital which is required to enlarge the size of an organization through various modes. Expansion financing can be used for various purposes such as launching of a new product or the acquisition of new customers/ market. The expansion is done by an organization for its growth to expand the area or scope of an organization. The financing can be done through various modes such as financing from internal accruals, equity financing, loan from bank or financial institutions etc. The mode of financing depends upon various factors such as nature of business, company strategy for expansion, cash inflows and outflows schedule etc.

We have to determine the facts relating to financing for expansion.