From the Standpoint of the Issuing Company, a Disadvantage of Using

Multiple Choice

From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that

A) bond interest is deductible for tax purposes.
B) interest must be paid on a periodic basis regardless of earnings.
C) income to shareholders may increase as a result of trading on the equity.
D) the bondholders do not have voting rights.