Which of the following is true? Retained Earnings are costlier than External Equity, Retained Earnings are cheaper than External Equity, Equity Retained earnings are cost-free, External Equity is cheaper than Internal Equity
مندرجہ ذیل میں سے کون سا سچ ہے؟ برقرار رکھی ہوئی آمدنی بیرونی ایکویٹی سے زیادہ مہنگا ہے ، برقرار رکھی ہوئی آمدنی بیرونی ایکویٹی سے سستی ہے ، ایکویٹی برقرار رکھنے والی آمدنی لاگت سے پاک ہوتی ہے ، بیرونی ایکویٹی داخلی ایکویٹی سے سستی ہوتی ہے۔
Answer: Retained Earnings are cheaper than External Equity
Explanation
Retained earnings involve no flotation or issuance costs, making them cheaper than raising funds through external equity.
External equity includes underwriting and administrative expenses, increasing its cost.
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