Derivatives can be a cost-effective way to manage interest rate risk

Why would a corporation issue bonds payable instead of issuing stock?

A) Debt is a less expensive source of capital than stock. B) Borrowing by issuing bonds payable carries no risk to the company. C) Debt affects the percentage of ownership of the corporation by the stockholders. D) Debt does not have to be shown on the balance sheet.

Compared to other appraisal factors, appraisers generally find the ____________________ the most difficult calculation to measure precisely.

a. capitalization rate (cap rate) b. cost to rebuild today with modern methods and materials c. gross rent multiplier (GRM) d. accrued depreciation