Which financing source usually costs the most?

Name: Which financing source usually costs the most?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Common shares typically cost the most because they come with an expectation of higher returns due to the higher risk involved for the investors. Equity investors often expect higher returns than lenders or preferred shareholders, as they are last in line in case of liquidation and their returns are not fixed but depend on the company's performance.

Which Financing Source Usually Costs the Most