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papahomer papahomer
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6 years ago
Which of the following reasons causes investors to require a lower rate of return on the firm's bonds than on its stock?
A) Bondholders bear less risk than common stockholders bear.
B) Bondholders have prior voting rights over common stockholders.
C) Bondholders receive greater returns than common stockholders.
D) Investors pay a lower tax rate on bond interest
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
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David_hessDavid_hess
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6 years ago
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