If a company wants to maximize earnings per share it would issue:
A) stock or bonds, depending on the tax rate.
B) stock or bonds, depending on the interest rate.
C) bonds.
D) stock.

Question

Quizplus · Accepted Answer

Issuing bonds can maximize earnings per share because interest payments on bonds are tax-deductible, reducing taxable income and potentially increasing net income available to shareholders.

If a Company Wants to Maximize Earnings Per Share It