Given that companies issuing loans and debentures will be obliged to meet interest payments when they fall

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Given that companies issuing loans and debentures will be obliged to meet interest payments when they fall due, why do companies not just issue share capital only and avoid this obligation?

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Accounting A Smart Approach

ISBN: 9780199587414

1st Edition

Authors: Mary Carey, Jane Towers Clark, Cathy Knowles

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Question Posted: May 14, 2024 05:01 AM

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Given that companies issuing loans and debentures will be obliged to meet interest payments when they fall

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Issuing shares instead of taking on debt via loans or debentures can indeed alleviate the obligation to make interest payments However companies often ...View the full answer

Accounting A Smart Approach

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