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Find the advantages of bond or debt financing

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Reference no: EM132488416

Find the advantages of bond or debt financing verses issuing common stock. Companies can issue both bonds and stock, but they must be mindful of the impact both have on the return on assets and return on commons stockholders' equity.

Question 1. Why is stockholder's control not affected.

Question 2. Why is there tax savings?

Question 3. Why may the return on common stockholders' equity be higher?

Reference no: EM132488416

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