The management, through approval by stockholders, can raise low-cost capital using the following methods:

(a) Equity financing through the sale of new stock

(b) Debt financing, preferably long term loans with low-interest rates

(c) Use of cash reserves accumulated from profits accruing over time

(d) Sale of existing assets and/or

(e) Issuing bonds.

Unlike bank loan agreements, the above methods provide more flexibility for the company.