Even if it is riskier to issue debt, most companies still choose to do this because
A) money that is borrowed increases earnings per share.
B) it produces a higher return on equity.
C) it does not affect shareholder control.
D) all of the above are correct.

Question

Quizplus · Accepted Answer

Issuing debt can increase earnings per share and return on equity by leveraging the company's capital structure, and it does not dilute shareholder control, unlike issuing new equity.

Even If It Is Riskier to Issue Debt, Most Companies