An Advantage of Bond Financing Is

question 34

Multiple Choice

An advantage 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) All of these.

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Definitions:

Mutual Agency

A principle in partnership businesses where each partner has the power to bind the partnership in agreements with third parties.