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Question: One of your clients, John Browne, is considering different ways to raise money for the expansion of his company's operations.

Question: One of your clients, John Browne, is considering different ways to raise money for the expansion of his company's operations. John is not sure about the advantages of issuing bonds versus issuing common stock. He asks you to explain, in simple terms, the answer to his question.


Post a response as though you are responding to John's question. Include in your post an explanation of:

(1) the advantages and disadvantages of issuing bonds

(2) the advantages and disadvantages of issuing common stock.

(3) the basic differences between preferred stock and common stock.

Top Answer

The major advantage of issuing the bonds is that By issuing the bonds the company may get the money from the investors... View the full answer

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