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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,

  1. Retained Earnings
  2. New Debts
  3. New Popular Assignments
  4. 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.

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