Multiple Choice
Which of the following is not an advantage of issuing long-term debt?
A) The stockholders do not relinquish any control.
B) The interest is tax-deductible.
C) The risk of becoming bankrupt is reduced.
D) Increased earnings accrue to the stockholders.
Correct Answer:
Verified
Correct Answer:
Verified
Q80: Discuss and define financial risk,financial leverage,and negative
Q81: The call price of bonds is usually
Q82: When a bond has been issued at
Q83: On January 2,20x5,Fresh Inc.issued 20-year bonds payable
Q84: Financial leverage refers to the issuance of
Q86: An $80,000 bond issue priced at 97
Q87: Under an operating lease,the lessee records which
Q88: Plum Corporation issues $400,000 of 7 percent,five-year
Q89: The carrying value of a bond is
Q90: When bonds are issued at a discount,the