The cheapest source of finance is: Options: A . &nbsp Equity share capital B . &nbsp Preference share C . &nbsp Retained earning D . &nbsp Debenture

The cheapest source of finance is:

Discussion Forum : Financial Management

Question -

The cheapest source of finance is:

Options:

A . Equity share capital

B . Preference share

C . Retained earning

D . Debenture

Answer: Option C
:
C

Retained earning is a part of profit which is not distributed among shareholders as dividends but is retained in the business for future use. It is also known as self financing. It is available free of cost for the business.The cheapest source of finance is:

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Discussion Forum : Financial Management

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