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Which of the following are reasons that a company might prefer to sell bonds than issue stock?

mkjmabrey

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Which of the following are reasons that a company might prefer to sell bonds than issue stock?

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.

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Personal Finance

Personal Finance

Edition: 2^nd

Author: Bajtelsmit

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raihala49

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mkjmabrey Author

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Smart ... Thanks!

Brownr40

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Just got PERFECT on my quiz

bahajo

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Brilliant ツ

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