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.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.