Question
for a corporation that issues bonds, the disadvantage of issuing bonds as long term borrowing is that: a. they can raise large amounts of money
for a corporation that issues bonds, the disadvantage of issuing bonds as long term borrowing is that:
a. they can raise large amounts of money
b. bonds will not impact the voting rights of existing shareholders
c. interest payments to bondholders are tax-deductible
d. income to stockholders may decrease if the return on borrowed funds is less than the amount of interest paid on bonds.
carrying value of bonds issued at a discount is:
a. face value - amortized discount
b. carrying value at the end of the previous year- the amortized discount of the current year
c. face value + unamortized discount
d. carrying value at the end of the previous year + the amortized discount of the current year
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