Question

State any four merits of retained earnings as a source of finance.

Answer 1

Answer:

hey mate here is your answer:

Explanation:

The important features of retained earnings as a source of internal financing have been summarized below:

• Cost of Financing: ADVERTISEMENTS.

• Floatation Cost: Unlike other sources of financing, the use of retained earnings helps avoid issue- related costs.

• Control: ADVERTISEMENTS.

• Legal Formalities.

hope it will help you...

Answer 2

Answer:

Explanation:

The important features of retained earnings as a source of internal financing have been summarized below:

Cost of Financing: ADVERTISEMENTS.

Floatation Cost: Unlike other sources of financing, the use of retained earnings helps avoid issue- related costs.

Control: ADVERTISEMENTS.

Legal Formalities.

hope it will help you...