Explain the process to calculate external funding needs and the importance to a

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Hi, If you like my answer rate me lifesaver first...that way only I can earn points. Thanks External funding involve borrowing of capital or money from other people for your own projects so that you can earn more profits. Steps 1) Capital Budgeting -> how much do you need and at what rate 2) Capital Financing -> Choosing for the best options available for details from 1) 3) Issuing relevant form of equity to get capital against it. It is very vital part of running your business. Not every business have sufficient funds everytime for their investments in projects etc. So, this is the only way out, and this has helped many many companies to grow exponentially.

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