Companies Can Raise Additional Capital Either by Issuing Bonds or by Selling

question 31

Essay

Companies can raise additional capital either by issuing bonds or by selling common stock.And investors can buy either bonds or common stock as a way to earn additional revenue.Both alternatives have ramifications for both the issuing company and the investor.
Required:
Discuss the advantages and disadvantages of bonds versus common stock from both the issuing company's and the investor's perspective.

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Definitions:

Dependent Premises

Dependent premises are a set of premises in an argument that rely on each other for the argument's conclusion to hold.

Conclusion

The statement that logically follows from the premises in a deductive argument.

Argument

A series of statements or reasons made to persuade others that an action or belief is right or wrong, usually concluding with a main assertion.

Independent Premises

Statements in an argument that do not rely on one another to support the conclusion.