Homework Answers
| Option B is the answer | |
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Payment of interest on bonds should be made even when the company doesn't earn enough. Hence it is not an advantage. Comment if you face any issues |
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QUESTION 3 1 All of the following are advantages of issuing bonds rather than stock except...
1. From the standpoint of the issuing company, a disadvantage of using bonds as a means...
1. 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 stockholders may increase as a result of trading on the equity D. the bondholders do not have voting rights. 2. Bonds that mature at a single specified future date are called A. coupon bonds. B. term...
All of the following are characteristics of common stock EXCEPT (Select the best choice below.) 0...
All of the following are characteristics of common stock EXCEPT (Select the best choice below.) 0 A. The dividends are tax-deductible for issuing corporation. O B. Voting rights which permit selection of the firm's directors Claims on income and assets which are subordinate to the creditors of the firm. C. D. That there is no fixed payment obligation.
All of the following are advantages of bond financing are true except: Provided the company with...
All of the following are advantages of bond financing are true except: Provided the company with faster capital than saving profits. Bonds can increase return on equity. Bonds do not affect ownership control of entity. Bond interest in tax deductible. Bonds requirement for use of cash does not change with the entity's cash supply.
Which of the following statements is true? Issuing bonds will dilute shareholdings. O Interest on bonds...
Which of the following statements is true? Issuing bonds will dilute shareholdings. O Interest on bonds is tax-deductible. O Interest on bonds is not tax-deductible. O Bonds never create financial leverage. O Dividends to shareholders are tax-deductible.
An advantage of obtaining long-term funds by issuing additional stock, instead of issuing bonds is? Multiple Choice...
An advantage of obtaining long-term funds by issuing additional stock, instead of issuing bonds is? Multiple Choice 01:22:21 - O Dividend payments can be deducted for income tax purposes Expansion is accomplished without surrendering ownership control. Interest expense is tax deductible. It lowers the chance of bankruptcy because dividends for stock are not required payments, but interest expense for bonds are required payments.
A common advantage of obtaining long-term funds by issuing bonds, rather than borrowing from the bank,...
A common advantage of obtaining long-term funds by issuing bonds, rather than borrowing from the bank, includes which of the following? Multiple Choice ts awarded Scored O Bonds involve less surrendering of ownership control Bonds usually have a lower interest rate Bonds are more likely to involve borrowing from a single lender Bond issue costs are usually lower than fees charged by the bank.
All of the following are characteristics of preferred stock except O A. It has less restrictive...
All of the following are characteristics of preferred stock except O A. It has less restrictive covenants than debt. OB. It is often considered a quasidebt due to fixed payment obligations OC. It gives the holder voting rights which permit selection of the firm's direction OD. Its holders have priority over common stockholder in the liquidation of assets.
All of the following are advantages to the corporation of issuing convertibles EXCEPT: Multiple Choice Provides...
All of the following are advantages to the corporation of issuing convertibles EXCEPT: Multiple Choice Provides a low-cost financing alternative for large, high-quality companies. Is used when the corporation believes its stock is undervalued. Generally is lower cost than straight debt. Provides access for small companies to the debt market.
interest to bond holders and $6.00 million to preferred stockholders in dividends. Use Table 17-4. Time...
interest to bond holders and $6.00 million to preferred stockholders in dividends. Use Table 17-4. Time Watch Co. has $60 million in earnings and is considering paying $7.00 million What are the bondholders contractual claims to payment? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places (e.g., $1.23 million should be entered as "1.23").) Legal contractual claim million Table 17-4 Features of alternative security Issues Common Stock Preferred Stock Bonds 1.Ownership Belongs to common...
Question 1 10 pts With regard to a residence, all of the following are advantages of...
Question 1 10 pts With regard to a residence, all of the following are advantages of renting except for: pay less than owning no large down payment no chance for financial loss of investment few responsibilities O you are responsible for maintenance and repairs
1. 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 stockholders may increase as a result of trading on the equity D. the bondholders do not have voting rights. 2. Bonds that mature at a single specified future date are called A. coupon bonds. B. term...
All of the following are characteristics of common stock EXCEPT (Select the best choice below.) 0 A. The dividends are tax-deductible for issuing corporation. O B. Voting rights which permit selection of the firm's directors Claims on income and assets which are subordinate to the creditors of the firm. C. D. That there is no fixed payment obligation.
Which of the following statements is true? Issuing bonds will dilute shareholdings. O Interest on bonds is tax-deductible. O Interest on bonds is not tax-deductible. O Bonds never create financial leverage. O Dividends to shareholders are tax-deductible.
An advantage of obtaining long-term funds by issuing additional stock, instead of issuing bonds is? Multiple Choice 01:22:21 - O Dividend payments can be deducted for income tax purposes Expansion is accomplished without surrendering ownership control. Interest expense is tax deductible. It lowers the chance of bankruptcy because dividends for stock are not required payments, but interest expense for bonds are required payments.
A common advantage of obtaining long-term funds by issuing bonds, rather than borrowing from the bank, includes which of the following? Multiple Choice ts awarded Scored O Bonds involve less surrendering of ownership control Bonds usually have a lower interest rate Bonds are more likely to involve borrowing from a single lender Bond issue costs are usually lower than fees charged by the bank.
All of the following are characteristics of preferred stock except O A. It has less restrictive covenants than debt. OB. It is often considered a quasidebt due to fixed payment obligations OC. It gives the holder voting rights which permit selection of the firm's direction OD. Its holders have priority over common stockholder in the liquidation of assets.
interest to bond holders and $6.00 million to preferred stockholders in dividends. Use Table 17-4. Time Watch Co. has $60 million in earnings and is considering paying $7.00 million What are the bondholders contractual claims to payment? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places (e.g., $1.23 million should be entered as "1.23").) Legal contractual claim million Table 17-4 Features of alternative security Issues Common Stock Preferred Stock Bonds 1.Ownership Belongs to common...
Question 1 10 pts With regard to a residence, all of the following are advantages of renting except for: pay less than owning no large down payment no chance for financial loss of investment few responsibilities O you are responsible for maintenance and repairs
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