One potential of financing corporations thru the use of bondsrather than common stock is: a) the interest on bonds must be paid when due b)the corporation must pay the bonds at maturity c) the interest is expense is tax deductable by thecorporation d) a higher earnigs per share is guarenteed for existingcommon shareholders One potential of financing corporations thru the use of bondsrather than common stock is: a) the interest on bonds must be paid when due b)the corporation must pay the bonds at maturity c) the interest is expense is tax deductable by thecorporation d) a higher earnigs per share is guarenteed for existingcommon shareholders
Explanation / Answer
c) the interest expense is tax deductible by thecorporation