Examlex
Which of the following statements is correct with respect to the functions of government?
External Equity
Refers to funds raised through issuing shares of stock to outside investors, as opposed to internal financing through retained earnings.
Required Rate
The minimum return an investor expects to achieve from an investment, considering its risk level.
External Equity
Funds raised through the sale of company shares in the capital markets, as opposed to internal financing through retained earnings.
Retaining Earnings
The portion of net income that is not distributed to shareholders but is kept by the company to be reinvested in its core business or to pay debt.
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