Regarding cost of capital, what would be the most expensive means to obtain finance?

I know a firm can obtain financial assistance is by selling shares. They can use debt financing and issue bonds as well. I believe there is also cost of equity to consider. I'm not sure if I am forgetting something.

I believe anyone can understand the decisions made by a CFO of a major corporation if they were explained in a simple manner. Consider this; u own a strong business that earns a compounded annual return of 20% and u just decided that it's time to expand. The project u r considering will also earn the same 20% but it requires financing of course. Two choices there:

1- Someone steps in and partners with you just to make a 20% return on the money he'll give u. He'll also assume permanent ownership rights like yours.

2- Someone who will give u a loan (in dollars for instance) just to make no more than 6-7% on his money. It gets even better when u repay him in full because by then he's supposed to walk! Your empire just got bigger.

Debt is a much better alternative u see

The order of financing sources from most favorable to least favorable is: retained earnings, debt, and finally a new equity issuance. The cost of equity is the highest of all. This bodes well with the common concept of associating higher risk with higher reward. Equity is a very risky investment, u know. A new partner, who would assume the same exposure as u, would require some compensation.

credit cards are the most expensive form of debt; pay down the corporate cards every month