From the Standpoint of the Issuing Company, a Disadvantage of Using

question 151

Multiple Choice

From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that

• A)bond interest is deductible for tax purposes.
• B)interest must be paid on a periodic basis regardless of earnings.
• C)income to stockholders may increase as a result of trading on the equity.
• D)the bondholders do not have voting rights.

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Definitions:

Distributed

Spread over a wide area or among many individuals or entities, often referring to computer networks or databases.

Body

The physical structure of a living organism, including its bones, muscles, organs, and other tissues.

Sore Muscles

A common physical condition characterized by pain, stiffness, or discomfort in muscles, often after intense exercise or unusual physical activity.

Chest Pain

A symptom of numerous potential conditions, ranging from non-serious muscle strain to life-threatening cardiac issues.