__________ represent the most favoured source of meeting long-term financing needs because there are no interest payments,dividends,or underwriting fees required when using this source.

Question

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Retained earnings refer to the portion of a company's profits that are not distributed as dividends to shareholders but are instead kept in the company for reinvestment. Since there are no interest payments, dividends, or underwriting fees required to use retained earnings as a source of funding, it is the most favored source of meeting long-term financing needs. However, it should be noted that using retained earnings for financing purposes can limit a company's ability to pay dividends to shareholders in the future.

__________ Represent the Most Favoured Source of Meeting Long-Term Financing