Which of the following is not an advantage of issuing bonds instead of common stock?
A)Stockholder control is not affected
B)Earnings per share on common stock may be lower
C)Tax savings result
D)Each of these answer choices is an advantage.

Question

Quizplus · Accepted Answer

Issuing bonds instead of common stock can lead to higher earnings per share on common stock, not lower, because it avoids diluting existing shareholders' equity.

Which of the Following Is Not an Advantage of Issuing