Which of the following is not an advantage of issuing bonds instead of common stock?
A) Stockholder control is not affected.
B) Earnings per share on common stock may be lower.
C) Income to common stockholders may increase.
D) Tax savings result.

Question

Quizplus · Accepted Answer

Issuing bonds instead of common stock does not lower earnings per share; it may actually increase it because bonds do not dilute ownership.

Which of the Following Is Not an Advantage of Issuing