The most expensive source of capital is:
a. preferred stock
b. new common stock
c. debt
d. pretained earning
what is the most important source
The most expensive source of capital is: a. preferred stock b. new common stock c. debt d. pretained earning
5. , the cheapest source of capital is debt. Whereas the most expensive source of capital is common stock. Because common stock holders do share the actual profit earned from the operation of a business. But when it comes to bonds, they are simply stated in terms of interest. Besides the ownership interest in common stock will make it more expensive while vice versa is for debt.
sources of fund means from where the capital we are getting & source of fund means how we can get the capital.
capital income:the main source of money.
Capital from limited partners in their fund.
Capital mean the main source for the business for starting.
debt
debit bankcredit capital
direct investment from abroad
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Share capital is cheap source of capital as it requires to be paid in last after payment of all other liabilities as well.