上海海事 外国计选读 课件 chapter15.pptVIP

Bonds (debt)—Interest payments to bondholders are an expense that reduces taxable income. Stock (equity)—Dividend payments are made from after tax net income and retained earnings. Earnings per share on common stock can often be increased by issuing bonds rather than additional stock. Earnings per share $ 1.20 $ 1.50 $ 2.46 Earnings per share $ 0.66 $ 0.42 $ 0.30 A bond contract is called a bond indenture 债券契约or trust indenture信托契约. Long-term debt—repayable 10, 20, or 30 years after date of issuance. Issued in face (principal) amounts of $1,000, or multiples of $1,000. Contract interest rate