Which of the Following Is NOT an Advantage of Issuing

question 194

Multiple Choice

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

---

Definitions:

Base Year

A specific year or period used as a reference point for comparison purposes in financial analysis.