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Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a company. a. Large payments of par value are
Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a company. a. Large payments of par value are made at maturity. b. Unlike equity, bonds do not affect ownership of a company, c. A business earns a lower retum with the funds from the bond than it pays in interest. d. A business earns a higher retum with the funds from the bond than it pays in interest e. Requires payments of interest even when cash flows are low. 1. Bond interest payments reduce total taxes paid
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