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Two major sources of financing for a corpoaration are: 1) selling stock and 2) issuing long-term debt such as bonds. Raising capital through bond financing
Two major sources of financing for a corpoaration are: 1) selling stock and 2) issuing long-term debt such as bonds. Raising capital through bond financing has its advantages and disadvantages. Below are 3 statements regarding bond financing: I. A disadvantage of bond financing is that it negatively impacts the ownership percentage of a corporation II. A disadvantage of bond financing is that interest expense on bonds is not tax deductible III. An advantage of bond financing is that interest payments to bondholders are optional Which of the following statements are true
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