Kizspy | Question: 45
(Choose 1 answer)
What is the primary disadvantage of bond financing related to a company's return on equity?
A. Bonds increase the company's return on equity.
B. Bonds can decrease the company's return on equity if the company has lower income.
C. Bonds allow the company to withdraw dividends freely.
D. Bonds do not require interest payments.
E. Bonds reduce the company's equity investments.
