All of the following are advantages of issuing stock except: A) generally results in a higher earnings per share B) creates no interest expense which must be paid C) creates no liabilities for the corporation D) less risky to the issuing corporation

Question

Quizplus · Accepted Answer

Issuing stock does not guarantee a higher earnings per share as it depends on various factors such as the company's performance and the number of shares outstanding. Other options listed are advantages of issuing stock, such as no interest expense or liabilities for the corporation and potentially being less risky than borrowing funds.

All of the Following Are Advantages of Issuing Stock except