Multiple Choice
Which of the following would be a reason that the stockholders of a company would issue bonds rather than stock to finance expansion?
A) Leveraged debt is always more advantageous than additional stock.
B) The value of their stock will inevitably decrease.
C) Dividends must be paid each year even if the company is not profitable.
D) Additional shares of stock might decrease earnings per share.
Correct Answer:
Verified
Correct Answer:
Verified
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