Why would a large publically traded corporation likely prefer issuing bonds as a way to raise new money as opposed to issuing more shares

B. more shares will dilute the existing value of the stock, causing its market price to fall

Explanation:

The company is already Publicly traded. If it were to issue more stock it would increased the amount of stock it has in the market which will lead to the prices reducing from a high amount of supply.

Companies generally do not want their stock prices to decrease as it sends negative signals to investors as well as the fact that management's role is to try to increase Shareholder wealth.

They will therefore rather issue bonds than risk their stock prices reducing in price.

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