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This is considered to be the most expensive source of funding
4. This is considered to be the most expensive source of funding,
- Retained Earnings
- New Debts
- New Popular Assignments
- New Equity Shares
Answer: D) New Equity Shares
Explanation:
New Equity Shares is considered the most expensive fund source compared to popular stocks with a fixed share of profits.
Companies can use a variety of sources of revenue for their business. Popular stocks and common stocks are the most common source of income. Choosing a specific source of funding depends on the risk involved and the expected level of return required by investors. Therefore, one needs to do a risk assessment before finalizing any potential source of capital expenditure.