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Sehaj joined his father's business of Organic masalas, near Baddi in Himachal after completing his MBA. In order to capture a major share of the market, he decided to sell the product in small attractive packages by using the latest packaging technology and machinery. He believed that this project has huge financial potential in terms of sales and cash flows. Father asked Sehaj to prepare a financial blueprint for the organization's future operations. His father suggested that they hire financial consultants to help them with various sources of funds. The consultant enlisted various sources of finance and their associated costs of public issue to determine the optimal source(s) of finance. The consultant also referred to certain guidelines issued by SEBI.

The father has consulted Financial Consultants to help with which decision?

Solution

✅ Correct Option: 1

The consultants were hired to help with various sources of funds and to determine the optimal sources of finance. Deciding the quantum and mix of funds from different sources is the financing decision.

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