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Which of the Following Is Not an Advantage of Issuing

Question 24

Multiple Choice

Which of the following is not an advantage of issuing bonds versus issuing stock to finance expansion?


A) Stockholders remain in control as bondholders cannot vote or share in the company's earnings.
B) Interest expense is tax deductible but dividends are not.
C) Money can usually be borrowed at a lower rate and then invested to earn a higher return on assets.
D) The fixed payment dates for the interest and maturity value.

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