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Ken Robinson- Write a memo to the president, answering his request

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Ken Robson, president of the Robson Corporation, is considering the issuance of bonds to finance an expansion of his business. He has asked you to (a) discuss the advantages of bonds over common stock financing, (b) indicate the types of bonds he might issue, and (c) explain the issuing procedures used in bond transactions.

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Write a memo to the president, answering his request.

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The expert writes a memo to president answer his request from Ken Robinson.

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ANSWERS

TO : Ken Robson
President
Robson Corporation
FROM : [Name]
[Position]
[Company]

SUBJECT : Raising capital from bonds issuance

++++++++++++++++++++++++++++++

First, the most attractive feature of a bond issuance in raising needed capital over equity issuance is the tax benefits from the bonds' interest payment. That is, interest expenses related to the bonds are ...

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