1.

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

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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...



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