All other factors being equal,issuing bonds rather than issuing stock will:

Name: All other factors being equal,issuing bonds rather than issuing stock will:
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Question

Quizplus · Accepted Answer

Issuing bonds rather than stock increases earnings per share because it does not dilute the ownership of existing shareholders. Interest expenses from bonds are tax-deductible, which can also improve net income relative to issuing equity, assuming the company generates sufficient profit to cover the interest payments.

All Other Factors Being Equal,issuing Bonds Rather Than Issuing Stock