When debt is issued instead of equity, earnings per share may be higher.

Name: When debt is issued instead of equity, earnings per share may be higher.
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Issuing debt instead of equity can lead to higher earnings per share because interest expenses are tax-deductible, reducing the company's taxable income and potentially increasing net income allocated to each share, whereas issuing equity would dilute the earnings among a larger number of shares.

When Debt Is Issued Instead of Equity, Earnings Per Share