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true or false questions An advantage of issuing a bond relative to stock is that the bond interest payments are tax deductible The proceeds received

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An advantage of issuing a bond relative to stock is that the bond interest payments are tax deductible The proceeds received from a bond issue will be greater than the bond maturity value when the coupon rate exceeds the market rate of interest. There would be 100,000 shares of common stock outstanding when the number of shares authorized was 150,000, issued shares totaled 120,000, and 20,000 shares were being held in the treasury Earnings per share decreases when a company purchases treasury stock. When a company acquires treasury stock, assets and stockholders' equity both decrease. Total stockholders' equity of Grasse Company is not affected when a stockholder sells shares of Grasse Company stock to another stockholder. Increases in the market rate of interest subsequent to a bond issue increase the discount on the bond. The payment of bond interest on the interest payment date, for bonds issued at par value, reduces both the bond liability and assets, assuming that interest expense is recorded at the time of the cash payment. Preferred stockholders do not have voting rights but do have a preference with respect to dividend payments. 10. Amortization of discount on bonds payable will make the amount of interest expense less than the cash owed for interest for that year

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