Which of the following is not an advantage of issuing bonds when compared to issuing additional shares of stock in order to obtain additional capital?

Are you having trouble answering the question “Which of the following is not an advantage of issuing bonds when compared to issuing additional shares of stock in order to obtain additional capital?”? If that’s the case, you don’t need to worry anymore. Azanswer has brought you the correct answer to your question.

Which of the following is not an advantage of issuing bonds when compared to issuing additional shares of stock in order to obtain additional capital?

a. Stockholders maintain proportionate ownership percentages.
b. Interest expense reduces taxable income.
c. Timing flexibility associated with the payment of interest.
d. All of the above are advantages associated with bonds.

Answer: c. Timing flexibility associated with the payment of interest.

We hope you have got the correct answer to your question “Which of the following is not an advantage of issuing bonds when compared to issuing additional shares of stock in order to obtain additional capital?”, which was part of Accounting MCQs & Answers. Thanks for choosing us.

Leave a Reply 0

Your email address will not be published. Required fields are marked *