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Bonds are a popular source of financing because a. financial analysts tend to downgrade a company that has raised large amounts of cash by frequent

Bonds are a popular source of financing because

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

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

c. the relative cost of issuing debt is often lower than the cost of issuing equity.

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

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