Which of the following is not a reason that a corporation would want to issue bonds instead of stock?
A) Interest payments can be deducted for income tax purposes.
B) Stockholders maintain control.
C)The impact on earnings from using borrowed money may be positive.
D)There is less risk associated with a bond issue.

Question

Quizplus · Accepted Answer

Issuing bonds typically involves more risk than issuing stock because bonds require fixed interest payments regardless of the company's financial performance, whereas dividends on stock are not obligatory.

Which of the Following Is Not a Reason That a Corporation