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Compare bonds to stocks in terms of raising capital

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Compare bonds to stocks in terms of raising capital.

Why are bonds preferable to a traditional bank loan from the standpoint of dilution, amount to be borrowed, and threat of bankruptcy?

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The solution compares bonds to stocks in terms of raising capital.

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Dilution: Issuing bonds will not dilute stock ownership percentage, voting control, value of individual shares, and EPS (Earnings per share) by the stockholders. Issuing stocks will decrease stock ownership, voting control, and EPS. High-diluted company stocks will be less ...

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