All of the Following Are Advantages of Issuing Bonds Except

question 50

Multiple Choice

All of the following are advantages of issuing bonds except:

• A) interest expense is tax deductible
• B) does not dilute control of the corporation
• C) less risky to the issuing corporation
• D) generally results in higher earnings per share

---

Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to a state of market balance.

Equilibrium Quantity

The quantity of goods or services demanded equals the quantity supplied at the market price, resulting in market equilibrium.

Excise Tax

A tax levied on the sale of specific goods and services, such as tobacco, alcohol, and fuel.

Levied

Imposed or collected (usually a tax, fine, or other charge) by authority or force.