Pranav udyog ltd is a comapny manufacturing electric devices . the comapnys financial manager Mr Dhruv in order to fulfil the long term financial and wants to raise the cheapest source of finance
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Explanation:
Financing decision involves identification of various available sources. The main sources of funds for a firm are shareholders funds and borrowed funds. Shareholders funds refer to equity capital and retained earnings. Borrowed funds refer to finance raised as debentures or other forms of debt. Retained earnings are the part of funds which are available within the business and is hence a cheaper source of finance.
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