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Signify TRUE or FALSE as applicable for each of the following items as they pertain to the differences between debt financing (issuing bonds) versus
Signify TRUE or FALSE as applicable for each of the following items as they pertain to the differences between debt financing (issuing bonds) versus equity financing (issuing stock) in order to raise money. There is no change in ownership rights when [Choose ] bonds are issued. [Choose ] False Interest payments on bonds are tax True deductible to the bond issuer. Cash dividend payments on stock are tax [Choose ] deductible to the stock issuer. Bond interest does not need to be paid [Choose ] unless the board of directors declares a payment. Bonds principal does not need to be paid unless the board of directors declares a payment. [Choose ]
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