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Which of the Following Is an Advantage of Issuing Bonds

Question 39

Multiple Choice

Which of the following is an advantage of issuing bonds rather than issuing stock?


A) Issuing bonds is more risky to the issuing corporation.
B) Issuing bonds generally results in lower earnings per share.
C) Interest expense is tax deductible.
D) Issuing bonds dilutes control of the corporation.

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