The financing option that does not dilute control of the corporation and often results in higher earnings per share is:
A)financing by issuing stock.
B)financing by issuing bonds payable.
C)financing by issuing notes payable.
D)both B and C.

Question

Quizplus · Accepted Answer

Issuing bonds payable or notes payable are forms of debt financing, which do not dilute ownership or control of the corporation, unlike issuing stock. Additionally, debt financing can lead to higher earnings per share since it does not increase the number of shares outstanding.

The Financing Option That Does Not Dilute Control of the Corporation