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:

Divorced Parents

Parents who have legally ended their marriage and are no longer together.

Authoritative Parenting

A parenting style characterized by high demands but also high responsiveness, combining structure with warmth and support.

Harmonious Relationship

A relationship characterized by compatibility, understanding, and mutual respect between individuals or groups.

Labor Force

The total number of people available to work, including both the employed and the unemployed seeking work.