除上述資金來源外，Myer管理層應考慮的另一個來源是公開發行債券。以下是對同一問題的解釋:發行債券——債券是承認從公眾那裏獲得的資金，用於企業經營或業務擴張。債券有巨大的法律影響。債券利息是企業組織的財務成本，法定到期。公司可以通過發行債券籌集巨額資金，並以積極的方式影響公司的財務杠桿(Du and Girma, 2012)。在Myer的情況下，發行債券可以成為他們業務擴張計劃的最佳資金來源。
Advantage- Biggest advantage of using retained earnings is that it does not have any implications with it like legal implication, there is outflow of funds and there will be no dilution of control. Retained earnings are safer source of finance as compared to other sources both debt and equity.
Disadvantage- Retained earnings carry opportunity cost with them and therefore require careful use. Opportunity cost is the profit or return that Myer can earn with the retained earnings amount by investing it in some other business opportunities. The second best alternative option of investment is the opportunity cost of retained earnings. Therefore, management of Myer needs to manage the same while investing in new business opportunity of Home ware business.
Apart from mentioned sources of finance, another source that management of Myer shall consider is of issue of debentures in the public. Following is explanation of same:Issue of Debenture- Debentures are acknowledgement of funds taken from the public for the use in business operations or business expansion. Debentures have huge legal implications with it. Interest on debentures is the financial cost for business organisation that becomes statutory due for them. Huge funds can be raised from debenture and it impacts financial leverage of company in posivitive manner (Du and Girma, 2012). In case of Myer, issue of debentures can be the best source of finance for their business expansion plan.
Advantage- Biggest advantage of debenture is its tax saving or tax incentive that they provide to business organisation. Interest paid on debenture is reduction from net profits for tax purposes and business entity enjoys tax saving in terms of payment of financial cost. Huge funds can be raised from debentures and Myer need huge funds for their business expansion. Repayment of borrowed funds form debenture can be made in instalments.
Disadvantage- There are some disadvantages also exists with using debentures like interest on debentures are statutory due for business organisation or for Myer. That means, if Myer is not able to pay interest on debentures or not able to redeem debentures on time then denture holders can sue Myer ltd. There is huge legal implication on issuing debentures.