If a corporation issues debt instead of common stock to finance the purchase of property, then the corporation has
A)a disadvantage of higher tax payments because dividends are a bigger deduction than interest.
B)no ability to avoid interest payments from the debt issuance under any circumstances.
C)required dividend payments that are usually double-taxed.
D)a higher earnings per share.

Question

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The Answer of If a corporation issues debt instead of common stock to finance the purchase of property, then the corporation has
A)a disadvantage of higher tax payments because dividends are a bigger deduction than interest.
B)no ability to avoid interest payments from the debt issuance under any circumstances.
C)required dividend payments that are usually double-taxed.
D)a higher earnings per share.

If a Corporation Issues Debt Instead of Common Stock to Finance