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Identify the following as elther an advantage (A) or a disadvantage (D) of bond financing for a company. Hey Seve a. An organization carns a
Identify the following as elther an advantage (A) or a disadvantage (D) of bond financing for a company. Hey Seve a. An organization carns a lower return with borrowed funds than pays in interest A business carns a higher return with the funds from the bond than it pays in interest c. Requires payments of interest even when cash flows are low d. Bond interest payments reduce total taxes paid .. Unlike equity ownership, a par value payment is required at a specified date Bonds do not affect owner control
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