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Pathways Logistics Is Considering Issuing Bonds to Help Fund the Purchase

Question 41

Multiple Choice

Pathways Logistics is considering issuing bonds to help fund the purchase of land for a new production facility. Which statement best represents a potential disadvantage that Pathways should consider before committing to the bond sale?


A) Bonds will increase the company's debt.
B) Bonds can change the firm's ownership.
C) Bond interest payments are not tax deductible.
D) Bond payments are permanent.
E) Bonds will require dividend payments each year.

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