Which of the following may be a disadvantage to issuing bonds to raise long-term capital?
A) interest payments to bondholders are fixed charges
B) ownership and control of the company are unaffected
C) positive financial leverage may be achieved
D) interest expense is tax deductible
Answer: A) interest payments to bondholders are fixed charges
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.