Potential of financing corporations


One potential of financing corporations through the use of bonds rather than common stock is:

a) the interest on bonds must be paid when due

b)the corporation must pay the bonds at maturity

c) the interest is expense is tax deductable by thecorporation

d) a higher earnigs per share is guarenteed for existingcommon shareholders

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Accounting Basics: Potential of financing corporations
Reference No:- TGS0555502

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