Radhika LTD. Has growth prospect so it is planning to expand their business. For this the company needs additional funds. The financial manger reports that the company is not in a position to extra burden of paying any fixsd financial charges like intrest or dividend they do want to bear any flotation costs even. Also the equity shareholders insist not to issue further shares as their is risk of dilution of control suggest and explain the source of finance most suitble for radhika LTD.
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Radhika Ltd. Has good growth prospects . So it si planning to expand their business. For this the company needs addtional funds. The finance manger reports that the company is not in a positionto bear extra burden of paying any fixed inancial charges like intrest or divident. They do not want to bear any flotation costs even. Alos, the equity shareholders insists not to issue further shares as there is risk of dilution of control. <br> Suggest and expalin the source of finance most suitable for Radhika Ltd.
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Retained earnings Is the source of finance
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