A Disadvantage of Bond Financing Is

question 161

Multiple Choice

A disadvantage of bond financing is:

• A)Bonds do not affect owners' control.
• B)Interest on bonds is tax deductible.
• C)Bonds can increase return on equity.
• D)It allows firms to trade on the equity.
• E)Bonds pay periodic interest and the repayment of par value at maturity.

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Definitions:

Planning Budget

A budget prepared for a specific level of activity, used as a tool for decision making and financial planning.

Customers Served

The total number of clients or customers who have been provided with a service or product during a specified period.

Revenue Formulas

Equations or models used to calculate the total amount of income generated from business activities during a specific period.

Shipping Container

A large, standardized, durable container used for transporting goods by sea, rail, or road.