Which of the following is NOT an advantage of issuing bonds instead of common stock?
A) Taxable net income is reduced
B) Earnings per share of common stock may be lower
C) Stockholder control is not affected
D) Income to common stockholders may increase

Question

Quizplus · Accepted Answer

Issuing bonds instead of common stock does not lower earnings per share; in fact, it may increase EPS because there are fewer shares outstanding.

Which of the Following Is NOT an Advantage of Issuing