One Advantage of Issuing Bonds Instead of Stock Is That

question 133

Multiple Choice

One advantage of issuing bonds instead of stock is that:

• A)Interest is tax deductible,whereas dividends are not.
• B)Bonds have a longer maturity date.
• C)Interest rates are lower than dividend rates.
• D)The issuance of bonds does not affect earnings per share.

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Definitions:

Nutrient-rich

Containing a high concentration of essential nutrients necessary for healthy growth and development.

Upwelling

Upward movement of deep, nutrient-rich water along coasts; it replaces surface waters that move away from shore when the direction of the prevailing wind shifts.

Ocean Current

Large scale movement of water within the oceans, driven by factors such as wind, salinity, and earth's rotation, influencing climate and marine ecosystems.

Freshwater Pollution

Contamination of lakes, rivers, and streams by harmful substances, leading to negative environmental and health effects.