The Motivation of a Parent Company to Purchase the Outstanding

question 37

Multiple Choice

The motivation of a parent company to purchase the outstanding bonds of a subsidiary could be to:

• A)​replace the existing debt with new debt at a lower interest rate.
• B)​reduce the parent company's acquisition price for the subsidiary.
• C)​increase the parent company's ownership percentage in the subsidiary.
• D)​create interest revenue to offset interest expense in future income statements.

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Definitions:

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The use of online platforms and websites to build social relations, share interests, or connect with friends and family.