2) T F Advantage of debt financing is that the lender has no control over your business 3) T F An advantage of bonds is that interest does not have to be paid 4) TF Bonds comes before common stock and after preferred stock when a corporation goes bankrupt. 5) T F Bond interest paid by a corporation is an expense, whereas dividends paid are not an expense of the corporation 6) A disadvantage of bonds is: A) Bonds require payment of periodic interest B) Bonds require payment of principal. C) Bonds can decrease return on equity. D) Bond payments can be burdensome when income and cash flow are low. E) All of the above. 7) T Bond financing is a form of stock equity. 8)T F The lower the cost of debt the better it is for the company. Nex 5:53 PM 4/25/2021