Corporation finances with the use of bonds

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Reference no: EM131206516

If a corporation finances with the use of bonds rather than equity, a desirable outcome of selecting this form of financing may well be: A. More owners would be involved with the company. B. A legal obligation to make interest payments exists. C. A favorable tax effect, due to the deductibility of interest. D. The market price of the company’s stock should fall.

Reference no: EM131206516

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