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retained earnings is costfree source of finance comment?
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∙ 11y ago
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Why is debt the cheapest source to finance a firm?
Because the firm don't have to pay an interest when obtaining it.debt isn't the cheapest source of finance on the contrarily interest must be paid on debt.The cheapest source of finance is retained earnings,this earnings can be converted into permanent share capital by issuing bonus shares t existing shareholders free of any cash contibutions
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