Correct option is (i)
The firm's sources of capital include debt, equity and retained earnings.
Companies are required to raise capital in order to invest in new projects and grow.
Using the retained earnings means companies don't owe anything but shareholders can expect a big increase in profits of the firm.
Companies raise the debt capital by borrowing from lenders and by issuing corporate debt in the form of bonds.
Equity capital, is the fund which comes from external investors, costs nothing but has no tax benefits.
Corporations often need to raise funding form the external sources or capital in order to expand their businesses into new markets or different locations. It also allows them to invest in research & development (R&D) or to fend off the competition.
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