题目
题目

ACCT 2051 (070) Exam #3

单项选择题

Which of the following is not a reason that a company would want to issue bonds (debt) instead of stock?

选项
A.Stockholders maintain control.
B.Interest payments can be deducted for income tax purposes.
C.There is less risk associated with a bond issue.
D.The impact on earnings from using borrowed money may be positive.
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思路分析
First, let’s restate what the question is asking: identify which statement is NOT a reason a company would choose to issue debt (bonds) rather than equity (stock). Option 1: 'Stockholders maintain control.' This is actually a valid reason to issue debt rather than stock, because debt financing does not dilute ownership or control rig......Login to view full explanation

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