Nama: Atikoh Puter Ametia NPM = 2o1100s1 \e Reading, \- What dre the two main ways opvernments can rake money 7 Tax revenue ond issue bonds 2. What are the two tain Ways established companies can raige money ? Issye_cew shares ard borrow money 3. What are the advanteges and disadvantages of bonds gor companies and investors? For companies - Bond imerest is tax deductible Dividens oid to sharebelders come {rom already taxed progits Dele: increases a company's sinancial risk bond interest has to be paid The principal has to be cegatd When the debt matures For wmestors : Bards are gpneraly saper than stocks oF shores Shares generally pay a higher ceturn than bonds Comprehension a 1. Market makers \ False a 2. True (3 Ofer 3, True 4 Yield A. False - 5. Tre Borrow money 6. Fase Deduct interest payments 1. False Finance _aetivties 8. False Pay (arate of) interest Pay a return Vecateslary seve bends L- Cash Aows. \Ssue_ shares 2 Equity Receive interest payments 3. Mutual funds Sail assets 4. Pension funds Repay principal 5. Principat Raise worey 6 Maturity 7. Coupon B. Bankrupt 9. Creditors 0. Dividens