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Bonds are a popular source of financing because a.a company having cash flow problems can postpone payment of interest to bondholders. b.the bondholders can always

Bonds are a popular source of financing because

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

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

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

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

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