A Major Disadvantage Resulting from the Use of Bonds Is

question 165

Multiple Choice

A major disadvantage resulting from the use of bonds is that

• A) earnings per share may be lowered.
• B) interest must be paid on a periodic basis.
• C) bondholders have voting rights.
• D) taxes may increase.

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Definitions:

Financial Performance

An overview of how well a business is using its assets to generate profits and cash flow, often analyzed through financial statements.