If a company uses a bond issue to raise capital, the financing is an example of:
A)equity financing.
B)debt financing.
C)lease financing.
D)debt and equity financing.

Question

Quizplus · Accepted Answer

Bond issues are a form of debt financing where the company borrows money from investors and promises to pay them back with interest over a set period of time. This is different from equity financing where the company sells ownership shares to investors in exchange for capital. Lease financing involves renting assets instead of buying them outright. Debt and equity financing would involve a combination of borrowing and selling ownership shares to investors.

If a Company Uses a Bond Issue to Raise Capital