Practice - Sources of Finance
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Practice Questions
Test your understanding with targeted questions
What is equity capital?
💡 Hint: Think of ownership.
What does debt capital involve?
💡 Hint: Consider loans or credits.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is equity capital?
💡 Hint: Think ownership.
Is retained earnings an external source of finance?
💡 Hint: Think of where the profits go.
1 more question available
Challenge Problems
Push your limits with advanced challenges
Assess a company's decision to favor equity financing over debt. Discuss the implications for ownership and financial risk.
💡 Hint: Consider the trade-offs of control and risk.
Evaluate a scenario where a company has high retained earnings but chooses not to invest in new projects. What would be the consequences?
💡 Hint: Reflect on opportunity costs.
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