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Other Fields Homework Help Finance Topic started by: mkjmabrey on Sep 10, 2023



Title: Which of the following are reasons that a company might prefer to sell bonds than issue stock?
Post by: mkjmabrey on Sep 10, 2023
Which of the following are reasons that a company might prefer to sell bonds than issue stock?

▸ It typically costs less to issue bonds than to issue stock.

▸ When a firm issues bonds, the percentage ownership of existing shareholders is not reduced.

▸ Interest payments on bonds are tax-deductible for the firm, whereas dividend payments are not.

▸ All of the above are reasons that a company might prefer issuing bonds over issuing stock.


Title: Re: Which of the following are reasons that a company might prefer to sell bonds than issue stock?
Post by: raihala49 on Sep 10, 2023
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