All of the Following Are Advantages of Issuing Stock EXCEPT

question 40

Multiple Choice

All of the following are advantages of issuing stock EXCEPT that it:

• A) creates no interest expense which must be paid.
• B) is less risky to the issuing corporation.
• C) creates no liabilities for the corporation.
• D) generally results in a higher earnings per share.

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Definitions:

Ethane

A simple aliphatic hydrocarbon with the formula C2H6, consisting of two carbon atoms single-bonded together and six hydrogen atoms.

UV Light

Ultraviolet light, a type of electromagnetic radiation with a wavelength shorter than visible light but longer than X-rays.

Reaction Rates

A measure of how quickly the concentration of reactants decreases or the concentration of products increases over time in a chemical reaction.

Free Radical

An atom, molecule, or ion that has an unpaired valence electron, making it highly reactive and prone to participating in chemical reactions.