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:

Business Decisions

Choices or judgments that are made in the course of managing a business, considering various factors to achieve organizational goals.