Bonds are a popular source of financing because

a.
bond interest expense is deductible for tax purposes, while dividends paid on stock are not.

b.
financial analysts tend to downgrade a company that has raised large amounts of cash by frequent issues of stock.

c.
a company having cash flow problems can postpone payment of interest to bondholders.

d.
the bondholders can always convert their bonds into stock if they choose.

e.
none of the above