One Advantage of Issuing Bonds Instead of Shares Is That

question 35

Multiple Choice

One advantage of issuing bonds instead of shares 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:

Erythrocytes

Red blood cells responsible for carrying oxygen from the lungs to the body tissues and carbon dioxide from the tissues back to the lungs, facilitated by the protein hemoglobin.

Oxygen-carrying Capacity

The maximum amount of oxygen that can be carried in the blood, mainly determined by the hemoglobin concentration.

Thrombin

An enzyme in blood plasma that causes the clotting of blood by converting fibrinogen to fibrin, playing a central role in hemostasis.

Universal Recipient

A term commonly used to describe individuals with AB positive blood type, who can receive red blood cells from any other blood type.