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Which of the following represents a reason why a company might prefer to issue bonds...

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Accounting

Which of the following represents a reason why a company might prefer to issue bonds instead of issuing shares of common stock? Select all answers that apply.

  • For the tax advantages (deductibility of interest)

  • To lower the risk of bankruptcy

  • To provide additional cash flow flexibility

  • To raise capital without forfeiting ownership in the company

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