Bonds Are a Popular Source of Financing Because

question 69

Multiple Choice

Bonds are a popular source of financing because

• A)the relative cost of issuing debt is often lower than the cost of issuing equity.
• B)financial analysts tend to downgrade a company that has raised large amounts of cash by frequent issues of stock.
• C)a company having cash flow problems can postpone payment of interest to bondholders.
• D)the bondholders can always convert their bonds into stock if they choose.

---

Definitions:

Joint Mobility

The range of uninhibited movement around a joint or body part.

Circumduction

The circular movement of a limb or eye where the end follows a circular path.

Central Axis

The core line running through an object or body, around which it is symmetrically arranged.

Rebound Tenderness

A clinical sign indicative of peritonitis, where pain is felt upon the quick release of deep pressure from the abdomen.