📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Which of the following is a typical source of project

    finance?
    A Commercial banks Correct Answer Incorrect Answer
    B Stock markets Correct Answer Incorrect Answer
    C Private equity firms Correct Answer Incorrect Answer
    D Venture capitalists Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Commercial banks are a typical source of project finance. Commercial banks provide debt financing to project sponsors in the form of long-term loans, which are typically secured by the project's assets and cash flows. Commercial banks are attracted to project finance transactions because they offer the potential for stable, long-term returns on investment. Project finance loans are often structured with a long repayment period that matches the expected life of the project, and the loan is repaid from the cash flows generated by the project.

    Practice Next
    More Financial Management Questions

    Relevant for Exams:

    ask-question