Which of the following are disadvantages of issuing bonds instead of stock? (check all that apply.)
a. interest payments are tax-deductible.
b. interest payments have a negative impact on cash flows.
c. interest payments are legal obligations.
d. bonds are riskier than stock.
e. dividends are legal obligations.

Data for hermann corporation are shown below: per unit percent of sales selling price $ 125 100 % variable expenses 80 64 contribution margin $ 45 36 % fixed expenses are $85,000 per month and the company is selling 2,700 units per month. required: 1-a. how much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000 and monthly sales increase by $20,000? 1-b. should the advertising budget be increased?