Based on the data in Exercise 14-1, what factors other than earnings per share should be considered in evaluating these alternative financing plans?
Answer:
Factors other than earnings per share that should be considered in evaluating financing plans include: bonds represent a fixed annual interest requirement, while dividends on stock do not; bonds require the repayment of principal, while stock does not; and common stock represents a voting interest in the ownership of the corporation, while bonds do not.