Indicate wheter each of the following is an advantage or disadvantage of using long-term bond financing rather than issuing common stock.

1. Interest paid on bonds is tax-deductible

2. Investments are sometimes not as successful as planned

3. Financial leverage can have a negative effect when investments do not earn as much as the interest payments on the related debt.

4. Bondholders do not have voting rights in a corporation

5. Positive financial leverage may be achieved