Question
which of the following statement regarding financing through bonds (long-term liabilities) or equity (stock) is incorrect? A. A company can receive the same amount of
which of the following statement regarding financing through bonds (long-term liabilities) or equity (stock) is incorrect?
A. A company can receive the same amount of cash from either stick insurance or bonds financing.
B. If a company earns more from its operating than the interest it pays on the bonds, it is called using a leverage that can help increase earnings per share of common stock.
C. Bonds financing will affect owners (shareholders) control over a company.
D. Bonds financing requires cash payments of periodic interest and the repayment of par value at maturity.
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