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Identify the source of finance highlight...

Identify the source of finance highlighted in the following cases:
(i) It refers to that part of profits that are kept as reserves for use in the future.
(ii) This source has characteristics of both equity shares and debentures.
(iii) It is the cheapest source of internal financing.
(iv) It is a permanent source of capital and not redeemed during the lifetime of the company.

Text Solution

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(i) Retained Earnings.
(ii) Preference Shares.
(iii) Retained Earnings.
(iv) Equity Shares.
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