One potential of financing corporations thru the use of bondsrather than common

Question

One potential of financing corporations thru the use of bondsrather than common stock is: a) the interest on bonds must be paid when due b)the corporation must pay the bonds at maturity c) the interest is expense is tax deductable by thecorporation d) a higher earnigs per share is guarenteed for existingcommon shareholders One potential of financing corporations thru the use of bondsrather than common stock is: a) the interest on bonds must be paid when due b)the corporation must pay the bonds at maturity c) the interest is expense is tax deductable by thecorporation d) a higher earnigs per share is guarenteed for existingcommon shareholders

Explanation / Answer

c) the interest expense is tax deductible by thecorporation

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