Which of the Following Would Explain Why a Firm Would

Multiple Choice

Which of the following would explain why a firm would want to sell stocks instead of bonds?

A) The owners are worried about the burden of debt.
B) The owners don't want to give up ownership of the business.
C) The owners aren't trying to finance production.
D) Stocks are easier to issue than bonds are.
E) There are more fees associated with issuing bonds.