Question: Required information Learning Objective 10-A1: Compare bond financing with stock financing. Bond financing is used to fund business activities. Advantages of bond financing versus stock

Required information Learning Objective 10-A1: Compare bond financing with stock financing. Bond financing is used to fund business activities. Advantages of bond financing versus stock include (1) no effect on owner control, (2) tax savings, and (3) increased earnings due to financial leverage. Disadvantages include (1) interest and principal payments and (2) amplification of poor performance. Bond Financing 12:20) 189,413.27 185.475.60 15172 (+1264) (-2.00) 4.99) 48.829.82 52,394.62 58,042.14 65 (29.34) (+7.30) 777.65 2 131

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