Essay The following answers point out the key phrases that should appear in students’ answers. They are not intended to be examples of complete student responses. It might be helpful to provide...

Essay

The following answers point out the key phrases that should appear in students’ answers. They are not intended to be examples of complete student responses. It might be helpful to provide detailed instructions to students on how brief or in-depth you want their answers to be.

153. What is capital structure? Why would a company choose to borrow money rather than issue additional stock?

154. Why do some companies issue bonds rather than borrow money directly from a bank?

155. Contrast the following types of bonds:

(a) Secured and unsecured.

(b) Term and serial.

(c) Callable and convertible.