Economics · Corporate Finance
What is the primary purpose of a 'bridge loan' for a corporation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To distribute annual dividends to preferential shareholders
- 2To provide short-term financing to maintain operations until long-term funding is secured✓
- 3To permanently retire old equity shares from the stock market
- 4To provide permanent, long-term capital for infrastructure construction
Correct answer
To provide short-term financing to maintain operations until long-term funding is secured
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