Why self-financing is cheaper than a donation?
Was reading something today and didn't quite understood if this is correct or not.
In theory, self-financing is the cheapest method of corporate finance, cheaper than a donation, but this is certainly more theoretical, especially since the donation is not financing
I mean, you can receive 100$ either directly from a donation (with 0 risks and 0 costs) or you could self-finance something expecting to earn 100$ and you have (i) Risk and (ii) A temporary lack of capital which could be used for other investments. So what is he talking about?
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