Sources of Investments Funds
1.) Share offer/equities
2.) Debentures
3.) Internal funds- withheld
4.) Loans
5.) Funds from proprietors
Constraints to funds
1.) High cost of borrowing (r)
2.) Net worth of the firm determines ability to borrow or to generate funds from share offer.
3.) Board of directors can put a limit on internal funds to be invested.
9 Comments