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

Question

Quizplus · Accepted Answer

Issuing stock generally dilutes earnings per share because it increases the number of shares outstanding, which can lower the earnings attributed to each share.

All of the Following Are Advantages of Issuing Stock Except