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.
A)Retained earnings
B)Debentures
C)Secured bonds
D)Warrants

Question

Quizplus · Accepted Answer

Retained earnings are the profits that a company chooses to reinvest back into the business rather than pay out as dividends. Since these funds are already owned by the company, there are no interest payments or underwriting fees required when using this source to meet long-term financing needs.

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