Which of the Following Is False Regarding the Issue of Stock

Multiple Choice

Which of the following is false regarding the issue of stock versus the issue of bonds to raise capital?

A) The issuance of stock decreases several important financial ratios.
B) Issuing bonds dilutes the voting power of the stockholders.
C) Corporations are not required to return the investment to the stockholders.
D) Investors expect to earn a higher rate of return on stocks than bonds.