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Which of the following statements are disadvantages of using bonds to finance a corporation? (i) A default on the fixed interest payments may result in
Which of the following statements are disadvantages of using bonds to finance a corporation?
(i) A default on the fixed interest payments may result in bankruptcy
(ii) It lowers the rate of return to its shareholders
(iii) It creates conflicts between shareholders and bondholders
(iv) It leads to higher tax payments
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