Smithers Inc. (SI) has determined that it requires $2 million to fund its strategic initiatives over the next three years. Wei, the CFO, is preparing a presentation for the board to decide whether the company should issue bonds or shares. What is a reason why SI may want to issue bonds rather than shares? 

Answer rating: 100% (QA)

1 Ownership and Control Issue Issuing shares can dilute ownership potentially reducing the control and decisionmaking power of existing shareholders S... View the full answer