Question

Question Content Area One potential advantage of a corporation issuing bonds rather than additional common stock is a.the interest expense reduces taxable income and, thus, income tax expense b.the interest on bonds must be paid when due c.a higher earnings per share is guaranteed for existing common shareholders d.the corporation must pay the bonds at maturity

Answer 1

An advantage of issuing bonds instead of additional common stock is a.the interest expense reduces taxable income and, thus, income tax expense

What is an advantage of issuing bonds?

When bonds are issued, this means that the company would have to pay interest payments on these bonds.

The interest payments are tax-deductible which means that they will come out of pretax income and will therefore reduce the tax amount paid by the company.

Find out more on the advantages of issuing bonds at https://brainly.com/question/24126434

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