Companies will borrow money by issuing corporate bonds

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Kennon also states that companies will borrow money by issuing corporate bonds. Through these bonds, depending on if the current market has a higher interest rate than what their re-existing debt does, then they will incur more debt (additional liabilities). This does not look favorably to increase liabilities which could make the company look riskier and therefore diminishing the value of their stock on the market. This would also decrease their assets. What does everyone think about this statement? Do you agree or disagree?

Reference no: EM132279179

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