A disadvantage of bond financing is: Multiple Choice Bonds can increase return on equity. It allows firms to trade on the equity. Bonds do not affect owners' control. Interest on bonds is tax deductible. Bonds pay periodic interest and the repayment of par value at maturity.

Gerda, a real estate agent, is selling a moderately priced house in a subdivision. she knows from her uncle that the factory being built half a mile from the subdivision will be manufacturing dog food, using a process that creates a very strong odor that permeates the surrounding neighborhood. a buyer, who is unaware of the type of factory under construction, makes an offer on one of the houses gerda is selling, and within a short time, the deal goes through. what does this scenario best illustrate?