1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
julsineya [31]
3 years ago
5

One potential advantage of financing corporations through the use of bonds rather than common stock is: ______________

Business
1 answer:
RSB [31]3 years ago
8 0

Answer:

d. the interest expense is deductible for tax purposes by the corporation.

Explanation:

Corporate finance can be regarded as division of finance which handles the way corporations deal with activities such as investment decisions as well as funding sources and capital structuring. Corporate finance primarily deals with maximization of shareholder value by the use of long and short-term financial planning as well as implementation of various strategies. financing of corporations could be through the use of bonds as well as use of common stock.

There are different advantages that is associated to issuing bonds instead of issuing shares of common stock, is that Interest that comes on bonds as well as other debt is deductible as regards to the income tax return of the corporation while the dividends that comes on common stock are not regarded as deductible on the income tax return. It should be noted that One potential advantage of financing corporations through the use of bonds rather than common stock is the interest expense is deductible for tax purposes by the corporation.

You might be interested in
A company believes that its product will exhibit network effects if enough consumers begin to use it. How might this company dec
frozen [14]

Answer:

A. Offer the product for free early on, and increase the price later.

Explanation:

Network effect occurs when the value of a product or service increases as more people use it.

For a company that believes its product will exhibit network effects and wants to get as many customers as possible to use the product,<u> it is best to offer the product for free to create a buzz around the product.</u>

This increases the chances of the people becoming aware of the product.

With time, <u>the company can increase the price of the product as people will be willing to pay for it because they consider it to be valuable.</u>

5 0
3 years ago
Can someone please help me
Ksenya-84 [330]

Answer:

you don't need to ask answer here just look up the definition and it will tell you the answer by the way the answer is letter B

Explanation:

6 0
4 years ago
Read 2 more answers
How can knowledge of call options help a financial manager to better understand warrants and convertibles
Arlecino [84]

<u>Explanation:</u>

Note that<em> call options</em> are simply contracts or tradable assests that gives owners the right to buy the stock at a certain price. While <em>a financial manager</em> is someone task with managing the assets of an investor in a company.

Knowledge of call options will allow the financial manager to sucessfully work with stocks, warrants (recently issued shares of stock), and convertible securities (such as debts been replaced with common stocks).

4 0
4 years ago
Summary of accounting chapter 1
slamgirl [31]

Answer:

Chapter 1 introduces the study of accounting. Accounting is defined as a set of concepts and techniques that are used to measure and report financial information about an economic entity. Accounting consists of both external reporting issues known as “financial accounting,” and internal reporting issues related to “managerial accounting.”

Explanation:

5 0
3 years ago
Which of these is an example of using secondary data for market research?
Effectus [21]

Answer:

B. Using census data to find information about your target market

Explanation:

4 0
4 years ago
Other questions:
  • If Best Buy sells a handheld personal planner for $199.99 and Best Buy marked up the personal planner 35% on the selling price,
    9·1 answer
  • What are the primary advantages to owning a franchise?
    6·2 answers
  • What percentage of new businesses fail in the first year a 75% B 25% C 40% D 60%
    8·2 answers
  • Colter Steel has $4,750,000 in assets. Temporary current assets $ 1,500,000 Permanent current assets 1,525,000 Fixed assets 1,72
    7·1 answer
  • Olinick Corporation is considering a project that would require an investment of $379,000 and would last for 8 years. The increm
    14·1 answer
  • True or False: A Mark Down is the amount added to the cost of a product to set the selling priceImmersive Reader
    12·1 answer
  • When Tina finds out that Kraft cheese is not available, she buys another brand of cheese, which she hasn't purchased before. As
    7·1 answer
  • HELP ASAP ECON !???
    15·1 answer
  • Choose the best options to complete the following paragraph.In the past, conventional wisdom dictated that the best executives w
    7·1 answer
  • On January 1, 2021, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on Septemb
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!