FM

Syllabus E1e. Internal Sources of Finance 4 / 9

e) Identify and discuss internal sources of finance, including:
i) retained earnings
ii) increasing working capital management efficiency
iii) the relationship between dividend policy and the financing decision
iv) the theoretical approaches to, and the practical influences on, the dividend decision, including legal constraints, liquidity, shareholding expectations and alternatives to cash dividends.
Internal Sources of Finance