Which of the following is not an advantage of issuing bonds instead of ordinary shares?
A) Shareholder control is not affected.
B) Earnings per share may be lower.
C) Income to ordinary shareholders may increase.
D) Tax savings result.

Question

Quizplus · Accepted Answer

Issuing bonds instead of ordinary shares may have advantages such as not affecting shareholder control, tax savings, and providing a fixed interest rate. However, issuing bonds may lower earnings per share as interest payments reduce profit available to shareholders, and does not directly increase income to ordinary shareholders.

Which of the Following Is Not an Advantage of Issuing