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Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a company. a. Requires payments of both periodic interest
Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a company. a. Requires payments of both periodic interest and par value at maturity. b. Bonds require payment of par value at maturity. c. Bonds do not affect owner control. d. A company ears a lower return with borrowed funds than it pays in interest. e. A company ears a higher return with borrowed funds than it pays in interest. f. Bonds require payment of periodic interest. Disadvantage Advantage
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