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Internal Finance

INTERNAL FINANCE:

A company can mobilize finance through external and internal sources. A new company may not raise internal sources of finance and they can raise finance only external sources such as shares, debentures and loans but an existing company can raise both internal and external sources of finance for their financial requirements. Internal finance is also one of the important sources of finance and it consists of cost of capital while compared to other sources of finance.

INTERNAL FINANCE
[Post Image Courtesy of Jannoon028 at FreeDigitalPhotos.net]

Internal source of finance may be broadly classified into two categories:

A. Depreciation Funds

B. Retained earnings

Sourced From: Financial Management By C. Paramasivan And T. Subramanian

About Author Mohamed Abu 'l-Gharaniq

when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries.

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