If a Company Wants to Maximize Earnings Per Share It

question 192

Multiple Choice

If a company wants to maximize earnings per share it would issue:

• A)stock or bonds, depending on the tax rate.
• B)stock or bonds, depending on the interest rate.
• C)bonds instead of stock.
• D)stock instead of bonds.

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Definitions:

Moral Hazard

A situation where one party is more likely to take risks because they do not bear the full consequences of their actions, often observed in insurance and financial sectors.

Risky Drivers

Individuals who engage in behaviors while driving that increase the probability of accidents, such as speeding, driving under the influence, or distracted driving.

Buying Insurance

The act of entering into an agreement with an insurer to receive financial protection or reimbursement against specified future losses.

Department Of Education

A government agency responsible for national policies and programs that help Americans access quality education and learning opportunities.