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Which of the following is true? Retained Earnings are costlier than External Equity, Retained Earnings are cheaper than External Equity, Equity Retained earnings are cost-free, External Equity is cheaper than Internal Equity

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Which of the following is true? Retained Earnings are costlier than External Equity, Retained Earnings are cheaper than External Equity, Equity Retained earnings are cost-free, External Equity is cheaper than Internal Equity Answer: Retained Earnings are cheaper than External Equity

Retained earnings are essentially profits kept by a company from previous periods, so they don't incur additional costs like flotation fees associated with issuing new equity, making them a cheaper source of internal financing compared to external equity.

Question context

This question is part of 🌍 Current Affairs within the broader 🌐 Current Affairs & GK subject and appears in the SPSC – Sindh Public Service Commission preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.