Question: Question 4 [4 points] Internal finance can avoid the agency costs of debt and equity finance. In practice it is the most important source of

 Question 4 [4 points] Internal finance can avoid the agency costs

Question 4 [4 points] Internal finance can avoid the agency costs of debt and equity finance. In practice it is the most important source of funding. (a) Discuss potential problems of internal finance. [2p] (b) What are potential solutions? [2p]

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