Which of the following statements is true in relationship to a company financing with debt rather than stock?
A.
The principal amount must be repaid at the maturity of the bonds.
B.
Trading on equity means that the business earns less by investing borrowed funds than it pays in interest expense on bonds.
C.
Earnings per share will generally be higher when a company is financed with stock rather than debt.
D.
Interest expense is not tax-deductible while dividends are tax-deductible.