Foundations of Financial Management
Foundations of Financial Management
16th Edition
ISBN: 9781259277160
Author: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Publisher: McGraw-Hill Education
Question
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Chapter 14, Problem 6DQ
Summary Introduction

To explain: The more dependable source of financing from the perspective of the corporation between external and internal funds.

Introduction:

Internal sources:

They are developed within the business from the existing assets or activities. Investment from owner, sale of stock, retained earnings, debt collection, and sale of fixed assets are the internal sources of financing.

External sources:

They refer to the cash flow that is generated from sources that are outside the business. These include loans from banks, preference shares, trade credit, and factoring, etc.

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